Overview of KTCCU
KTCCU was first established in the year 1949 and is the 15th largest credit union operating in the state of Kansas as measured by total assets. It is also larger than 69% of all credit unions in the country. In terms of its lending activities, the credit union primarily focuses on providing auto loans and these loans represent 62% of its outstanding lending. 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 4 branches and employs a total of 39 employees.
Details on the Credit Union’s Balance Sheet
Some of the key components of the credit union’s balance sheet are total assets of $132 million, total loans extended to customers of $116 million and customer deposits of $69 million. The average credit union in KTCCU’s peer set has a loan to deposit ratio of approximately 63%. In comparison, KTCCU has a loan to deposit ratio of 59% which is clearly lower than the peer set. A lower ratio is generally better as it indicates that the lending activities of a credit union are more comfortably covered by its deposit base. Deposits are often the most cost effective source of funding for banks and credit unions. Moving on to the credit union’s loan portfolio, it mainly consists of the following: auto loans make up 62% of the portfolio and there is a total of $42 million outstanding and mortgages and lines of credit comprises 27% of the loan book and there is a total of $18 million outstanding.
Contact and Other Helpful Information
- Main Office Address: P O Box 1296, Pittsburg, KS 66762
- Website: http://www.kstcu.org
- Phone: (620) 231-5719
- Charter Number: 67995
- Charter Year: 1949
- Employees: 39
- Routing Number: 301179410
- Membership: KTCCU has a membership base of 13,198 which is smaller than the average credit union operating in the state of Kansas. The average credit union in the state has 14,535 members. Over the past two years, the credit union’s total membership has increased by 3%.
KTCCU: Financial Overview
The above chart summarizes the trends in key balance sheet items for KTCCU. 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 12.9% while its total loans have decreased by 6.1%. In addition, the company’s auto loans have decreased by 6.7% while its deposits have grown by 16.2%. A credit union’s net worth is a good proxy for the value that a credit union has accrued over time. Based on the latest available information, KTCCU’s net worth stands at $14 million. This implies that the credit union has a net worth per member of $1,088 which is below the national average of $1,606.
Overview of the Credit Union’s Performance Metrics
The chart above compares KTCCU’s performance on three metrics to credit unions in its peer group and also shows the credit union’s performance on each metric in the prior year. These are some of the important measures for a credit union’s performance that we look at. Starting with the company’s return on assets, on this metric KTCCU is approximately inline with the average credit union in its peer set and over the past year ROA has improved with a total change of 0.07%. Return on assets tells us how productive a company is being with its asset base. We look at the delinquency rate within a loan portfolio as a way to assess the performance and quality of a credit union’s loan book. A lower delinquency rate indicates a better performing portfolio. KTCCU has a delinquency rate that is well above its peer group average and when compared with the prior year, we can see that it has been relatively stable. The net worth ratio for the credit union is 10.9% and has declined compared with the prior year figure of 11.6%. The credit union is also well above its peer group average of 9.7% on this metric. Finally, based on the NCUA guidelines, the company’s net worth ratio would classify it as well capitalized.
Overall, we believe KTCCU deserves a rating of 2.7 out of 5.0, which is above 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.