Introduction to Michigan Coastal Credit Union

Michigan Coastal Credit Union was first established in the year 1958 and is the 180th largest credit union operating in the state of Michigan as measured by total assets. It is also larger than 35% 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 38% of its outstanding lending. Michigan Coastal Credit 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 Michigan Coastal Credit Union’s operations. The company has a total of 1 branch and employs a total of 9 employees.

Discussion of the Credit Union’s Operations

The credit union currently has total assets of $24 million, total deposits of $21 million and net loans outstanding of $15 million. On average its members had a total of $7,163 deposited with the credit union – this is a helpful metric to monitor as it provides us with an idea of the level of engagement of the credit union’s membership base. Furthermore, the credit union has a loan to deposit ratio of 70% which is higher than credit unions of comparable size. Michigan Coastal Credit Union’s peer set of credit unions have a loan to deposit ratio of approximately 48%. A lower ratio is better since it means that a credit union’s lending activities are more comfortably covered by its deposit base. Lastly, Michigan Coastal Credit Union’s loan portfolio mainly consists of auto loans and mortgages and lines of credit which represent 38% and 30% of its loan book and had outstanding balances of $6 million and $4 million, respectively.

Contact and Other Helpful Information

  • Main Office Address: 1086 Creston St, Muskegon, MI 49442
  • Website: http://www.michigancoastal.com
  • Phone: (231) 777-3620
  • Charter Number: 61631
  • Charter Year: 1958
  • Employees: 9
  • Routing Number: 272483277
  • Membership: Credit unions in the state of Michigan have an average membership base of 27,640 compared with Michigan Coastal Credit Union which has total members of 2,975. Over the past three years, the credit union’s total base of members has declined by 3%.

Michigan Coastal Credit Union: Financial Overview

michigan coastal credit union-balance-sheet-metrics

The above chart summarizes the trends in key balance sheet items for Michigan Coastal 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 16.5% while its total loans have expanded by 16.0%. In addition, the company’s auto loans have increased by 1.3% while its deposits have grown by 18.6%. 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. Michigan Coastal Credit Union has a total net worth of $2 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 $718 which is below the national average of $1,606.

Overview of the Credit Union’s Performance Metrics

michigan coastal credit union-selected-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. Starting with the company’s return on assets, on this metric Michigan Coastal Credit Union is well above the average credit union in its peer set and over the past year ROA has improved with a total change of 0.12%. Return on assets tells us how productive a company is being with its asset base. The delinquency rate is a measure of what percentage of an entity’s loan book has fallen past due i.e. is delinquent. All else equal, a higher rate implies a worse performing loan portfolio. In the case of Michigan Coastal Credit Union its delinquency rate is well above its peers and over the past 12 months the credit union’s delinquency rate has improved substantially. The net worth ratio for the credit union is 9.1% and has declined compared with the prior year figure of 9.8%. The credit union is also below its peer group average of 13.0% on this metric. Finally, based on the NCUA guidelines, the company’s net worth ratio would classify it as well capitalized.

Conclusion

Our final rating for Michigan Coastal Credit Union, after assessing the credit union on what we consider to be the important metrics, is 2.1 out of 5.0, which is below average. 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.

Other Credit Unions in Michigan

Credit Union Name Website Total Members
Lake Michigan http://www.lmcu.org 431,725
MSUF http://www.msufcu.org 321,315
Genisys http://www.genisyscu.org 249,535
DFCU Financial www.dfcufinancial.com 232,424
United https://www.unitedfcu.com 190,986
Frankenmuth Credit Union http://www.frankenmuthcu.org 61,250
Wildfire Credit Union http://www.wildfirecu.org 49,780
Embers Credit Union https://www.embers.org 29,923
Our Credit Union http://www.ourcuonline.org 22,794
Gerber Federal Credit Union http://gerberfcu.com 16,332
Parda Federal Credit Union http://www.parda.com 15,305
Peninsula Federal Credit Union http://peninsulafcu.com 13,832
Filer Credit Union http://www.filercu.com 10,713
GLFFCU http://www.glffcu.com 8,681
Aeroquip Credit Union http://www.aeroquipcu.com 3,946
Tri Cities Credit Union http://www.tricu.org 3,929
Grand Trunk Credit Union http://www.grandtrunkcu.com 2,730