Overview of Long Beach Firemen’s Credit Union
First established in 1936, Long Beach Firemen’s Credit Union is a credit union based in the state of California and also one of the largest credit unions in the country. It is the 115th largest credit union operating in the state of California as measured by total assets. The credit union falls under the category: state charter. Unlike banks, credit unions like Long Beach Firemen’s Credit Union are not insured by the Federal Deposit Insurance Corporation (FDIC) but instead receive deposit insurance from the National Credit Union Administration (NCUA), which operates in a similar fashion to the FDIC. The company has a total of 1 branch and employs a total of 9 employees.
Who Can Join?
The credit union is open to people that fall into one of the four categories (1) employees of the Long Beach Fire Department and this credit union (2) retirees of the Long Beach Fire Department (3) spouses, parents, siblings, parents-in-law, children, son-in-laws, daughter-in-laws and grandchildren, of members (4) organizations of the members (such as the Long Beach Firefighters Local 372)
Overview of the Credit Union’s Assets and Liabilities
As previously indicated, the credit union currently has total assets of $233 million, which makes it larger than 77% of credit unions in the United States. Long Beach Firemen’s Credit Union also has net loans outstanding to customers of $120 million and a deposit base of $187 million. Furthermore, the credit union has a loan to deposit ratio of 64% which is higher than credit unions of comparable size. Long Beach Firemen’s Credit Union’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: mortgages and lines of credit make up 91% of the portfolio and there is a total of $109 million outstanding and other real estate loans comprises 4% of the loan book and there is a total of $5 million outstanding.
Contact and Other Helpful Information
- Main Office Address: 2245 Argonne Ave, Long Beach, CA 90815
- Website: https://lbfcu.org
- Phone: (562) 597-0351
- Charter Number: 67921
- Charter Year: 1936
- Employees: 9
- Routing Number: 322276842
- Membership: Credit unions in the state of California have an average membership base of 47,657 compared with Long Beach Firemen’s Credit Union which has total members of 3,289. Over the past two years, the credit union’s total membership has increased by 1%.
Long Beach Firemen’s Credit Union: Financial Overview
The above chart summarizes the trends in key balance sheet items for Long Beach Firemen’s Credit 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 9.6% while its total loans have declined by 13.6%. In addition, the company’s mortgages and lines of credit have fallen by 13.0% while its deposits have increased by 17.5%. ‘Net worth’ is a good way to assess the long-term performance of a credit union as it represents the accumulated value of the entity over time. Importantly this is value that accrues to the credit union’s owners: its members. Long Beach Firemen’s Credit Union has a total net worth of $45 million. This implies that the credit union has a net worth per member of $13,761 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 Long Beach Firemen’s Credit 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 declined given the year over year change of 0.12%. 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 improved. Keep in mind that a higher delinquency rate indicates a lower performing loan book so a declining rate is a favorable trend. The net worth ratio for the credit union is 19.4% and has declined compared with the prior year figure of 20.2%. 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 Long Beach Firemen’s Credit Union deserves a rating of 4.3 out of 5.0, which is exceptional. 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.