Introduction to Lisbon Farmers Union
First established in 1945, Lisbon Farmers Union is a credit union based in the state of North Dakota. It is the 33rd largest credit union operating in the state of North Dakota as measured by total assets and also in terms of the number of members. The credit union falls under the category: state charter. Lisbon Farmers Union’s deposits are insured by the National Credit Union Administration (NCUA), which operates very similarly to the Federal Deposit Insurance Corporation, except with a focus on credit unions. The NCUA also regulates and supervises Lisbon Farmers Union’s operations. The company has a total of 1 branch and employs a total of 2 employees.
Discussion of the Credit Union’s Operations
The credit union has total assets of $4 million. It has a deposit base of $2 million which works out to $6,701 of deposits per member compared with the state-wide average of $19,416 and national average of $13,595. Lisbon Farmers Union also has net loans outstanding of $3 million. The credit union also has a loan to deposit ratio of 183% which is higher than the average credit union of similar size. The loan to deposit ratio is a good way to assess how liquid a bank or credit union’s balance sheet is. Moving on to the credit union’s loan portfolio, it mainly consists of the following: mortgages and lines of credit make up 70% of the portfolio and there is a total of $2 million outstanding and auto loans comprises 13% of the loan book and there is a total of $ million outstanding.
Contact and Other Helpful Information
- Main Office Address: Po Box Ab, Lisbon, ND 58054-4113
- Website: N/A
- Phone: (701) 683-2296
- Charter Number: 64688
- Charter Year: 1945
- Employees: 2
- Routing Number: N/A
- Membership: Lisbon Farmers Union has a membership base of 239 which is significantly smaller than the average credit union operating in the state of North Dakota. The average credit union in the state has 6,307 members. Over the past three years, the credit union’s total base of members has declined by 6%.
Lisbon Farmers Union: Financial Overview
The above chart summarizes the trends in key balance sheet items for Lisbon Farmers Union. First off, it is noteworthy that across the board, all four items have increased over the past year. The credit union’s assets have increased by 5.5% while its total loans have decreased by 10.1%. In addition, the company’s mortgages and lines of credit have decreased by 9.5% while its deposits have grown by 16.1%. The net worth of a credit union provides us with an idea of how the credit union has performed over the years. It is the total value that the credit union has created for its members since inception. Lisbon Farmers Union has a total net worth of $3 million. This implies that the credit union has a net worth per member of $11,691 which is greater than the national average of $1,606.
Overview of the Credit Union’s Performance Metrics
The above chart shows some of the important metrics we look at when assessing a credit union, and compares these to the average credit union of comparable size. It also shows how these metrics have fared over the past year. If we take a look at Lisbon Farmers Union’s return on assets – which is usually a good measure of how efficiently a company is using its assets to produce profits – we see that the credit union is well above the average comparable credit union and also that over the past year ROA has improved substantially given the year over year change of 3.14%. 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 deteriorated. 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 63.6% which is well above its peer group average of 13.0%. This metric has declined on a year over year basis and stood at 66.9% a year ago. Based on the NCUA guidelines, the credit union is considered to be well capitalized.
Conclusion
Overall, we believe Lisbon Farmers Union deserves a rating of 3.4 out of 5.0, which is very good. Finally, please note that the rating information presented is based on our proprietary scoring system. None of the work presented is intended to be investment advice or advice of any sort and is presented purely for informational purposes.