Introduction to Memphis City Credit Union
Memphis City Credit Union was first established in the year 1969 and is the 16th largest credit union operating in the state of Tennessee as measured by total assets. It is also larger than 85% of all credit unions in the country. In terms of its lending activities, the credit union primarily focuses on providing mortgages and lines of credit and these loans represent 46% of its outstanding lending. Credit unions are regulated by the National Credit Union Administration (NCUA), which is an independent agency that was created by the U.S. government in 1970. The NCUA also insures customer deposits at credit unions in the country. The company has a total of 6 branches and employs a total of 97 employees.
Details on the Credit Union’s Balance Sheet
As previously indicated, the credit union currently has total assets of $442 million, which makes it larger than 85% of credit unions in the United States. Memphis City Credit Union also has net loans outstanding to customers of $231 million and a deposit base of $380 million. The credit union also has a loan to deposit ratio of 61% which is lower 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. Taking a closer look at the credit union’s loan portfolio, we see that mortgages and lines of credit represent 46% of the total and currently stands at $106 million, while there is $90 million of loans outstanding from auto loans which represents 39% of the credit union’s loan portfolio.
Contact and Other Helpful Information
- Main Office Address: 2686 Mount Moriah Ter, Memphis, TN 38115
- Website: http://www.memphiscu.org
- Phone: (901) 321-1200
- Charter Number: 60239
- Charter Year: 1969
- Employees: 97
- Routing Number: 284084208
- Membership: On average, credit unions in Tennessee each have 18,145 members while across the United States the equivalent figure is 25,779. By comparison, Memphis City Credit Union has total members of 41,392 which is significantly larger than the average credit union in the state. Over the past three years, the credit union’s total base of members has increased by 16%.
Memphis City Credit Union: Financial Overview
As shown in the above chart, Memphis City Credit Union’s assets have grown by 16.0% over the past year, while its mortgages and lines of credit – which is its largest category of lending – have grown by 17.4% over the past year. Furthermore, the company’s deposits have grown by 20.5% while its total loans have expanded by 12.3%. 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, Memphis City Credit Union’s net worth stands at $62 million. This implies that the credit union has a net worth per member of $1,489 which is below the national average of $1,606.
Overview of the Credit Union’s Performance Metrics
The chart above compares Memphis City Credit Union’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. If we take a look at Memphis City 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 above the average comparable credit union and also that over the past year ROA has improved given the year over year change of 0.19%. 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. Memphis City Credit Union has a delinquency rate that is below its peer group average and when compared with the prior year, we can see that it has improved. Finally, the net worth ratio for the credit union is 14.0% which is well above its peer group average of 9.7%. This metric has declined on a year over year basis and stood at 15.5% a year ago. Based on the NCUA guidelines, the credit union is considered to be well capitalized.
Our final rating for Memphis City Credit Union, after assessing the credit union on what we consider to be the important metrics, is 3.1 out of 5.0, which is above average. As a final note, please remember that our rating is the product of a proprietary scoring methodology which uses nationwide data for credit unions and our survey work. Importantly, none of the work presented herein is intended to be investment advice or advice of any sort and is presented purely for informational purposes.