Introduction to KVFCU
First established in 1962, KVFCU is a credit union based in the state of Maine. It is the 30th largest credit union operating in the state of Maine as measured by total assets. The credit union falls under the category: community credit unions, urban or rural (not low-income). The National Credit Union Administration (NCUA) insures deposits at credit unions in addition to regulating and supervising them. The NCUA was formed by the U.S. Congress in 1970. The company has a total of 3 branches and employs a total of 21 employees.
Overview of the Credit Union’s Assets and Liabilities
The credit union has total assets of $119 million. It has a deposit base of $108 million which works out to $10,004 of deposits per member compared with the state-wide average of $13,131 and national average of $13,595. KVFCU also has net loans outstanding of $58 million. Furthermore, the credit union has a loan to deposit ratio of 54% which is lower than credit unions of comparable size. KVFCU’s peer set of credit unions have a loan to deposit ratio of approximately 63%. A lower ratio is better since it means that a credit union’s lending activities are more comfortably covered by its deposit base. Moving on to the credit union’s loan portfolio, it mainly consists of the following: auto loans make up 43% of the portfolio and there is a total of $25 million outstanding and mortgages and lines of credit comprises 39% of the loan book and there is a total of $23 million outstanding.
Contact and Other Helpful Information
- Main Office Address: 316 W River Rd, Augusta, ME 04330-3992
- Website: http://www.kvfcu.org
- Phone: (207) 623-5171
- Charter Number: 15328
- Charter Year: 1962
- Employees: 21
- Routing Number: 211287366
- Membership: On average, credit unions in Maine each have 13,844 members while across the United States the equivalent figure is 25,779. By comparison, KVFCU has total members of 10,826 which is significantly smaller than the average credit union in the state. Over the past three years, the credit union’s total base of members has increased by 3%.
KVFCU: Financial Overview
The above chart summarizes the trends in key balance sheet items for KVFCU. First off, it is noteworthy that across the board, all four items have increased over the past year. The credit union’s assets have expanded by 15.8% while its total loans have grown by 13.1%. In addition, the company’s auto loans have expanded by 26.3% while its deposits have expanded by 19.0%. We like to look at a credit union’s net worth to get a sense of the performance of the entity over the years for its members. KVFCU has a total net worth of $10 million while the average credit union in the United States has a net worth of $41 million. This implies that the credit union has a net worth per member of $968 which is below the national average of $1,606.
Overview of the Credit Union’s Performance Metrics
In the above chart we have displayed three statistics that are important in evaluating a credit union’s performance and shown how KVFCU compares on these metrics, in addition to detailing how the credit union performed on each metric in the prior year. Beginning with KVFCU’s return on assets (aka ROA), on this statistic the credit union performs below the average comparable credit union. When we look at the year over year trends, we can see that ROA has improved given the 0.05% change. A credit union’s ROA is a good way of assessing how well the entity is using its assets to generate returns. Moving on to the credit union’s delinquency rate, which tells us how much of a credit union’s loan book is delinquent, the credit union is below its peer group on this metric and compared with the prior year it has been relatively stable. Keep in mind that a higher delinquency rate indicates a lower performing loan book so a declining rate is a favorable trend. Finally, the net worth ratio for the credit union is 8.8% which is below its peer group average of 9.7%. This metric has declined on a year over year basis and stood at 9.7% a year ago. Based on the NCUA guidelines, the credit union is considered to be well capitalized.
Overall, we believe KVFCU deserves a rating of 2.6 out of 5.0, which is average. Importantly, please be aware that none of the information presented is meant to be investment advice or advice of any form. All of the information and views expressed in this note and on this site are purely for informational purposes.