Introduction to Minnequa Works Credit Union
Minnequa Works Credit Union officially got its credit union charter in the year 1937. The credit union falls under the category: state charter. In terms of its lending activity, the credit union is mainly engaged in providing mortgages and lines of credit. These loans represent 57% of its total lending. Minnequa Works Credit Union’s total assets are larger than 77% of credit unions in the United States. 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 3 branches and employs a total of 36 employees.
Discussion of the Credit Union’s Operations
The credit union currently has total assets of $236 million, total deposits of $208 million and net loans outstanding of $80 million. On average its members had a total of $15,402 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. The average credit union in Minnequa Works Credit Union’s peer set has a loan to deposit ratio of approximately 63%. In comparison, Minnequa Works Credit Union has a loan to deposit ratio of 39% 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. Lastly, Minnequa Works Credit Union’s loan portfolio mainly consists of mortgages and lines of credit and auto loans which represent 57% and 30% of its loan book and had outstanding balances of $46 million and $24 million, respectively.
Contact and Other Helpful Information
- Main Office Address: 4700 Eagleridge Circle, Pueblo, CO 81008-2120
- Website: http://www.minnequaworks.com
- Phone: (719) 544-6928
- Charter Number: 68240
- Charter Year: 1937
- Employees: 36
- Routing Number: 307077231
- Membership: Minnequa Works Credit Union has a membership base of 13,498 which is significantly smaller than the average credit union operating in the state of Colorado. The average credit union in the state has 28,640 members. Over the past two years, the credit union’s total membership has declined by 6%.
Minnequa Works Credit Union: Financial Overview
Detailed above is a chart showing the progression of four important balance sheet items over the past year for Minnequa Works Credit Union. Assets and total loans for the credit union have grown by 10.4% and decreased by 0.9%, respectively. In addition, the company’s mortgages and lines of credit, which as noted earlier is the largest portion of the loan book, has expanded by 2.6%. Lastly, the credit union’s deposits have increased by 14.0%. 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. Minnequa Works Credit Union has a total net worth of $28 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 $2,105 which is greater than the national average of $1,606.
Overview of the Credit Union’s Performance Metrics
In the above chart we have displayed three statistics that are important in evaluating a credit union’s performance and shown how Minnequa Works Credit Union compares on these metrics, in addition to detailing how the credit union performed on each metric in the prior year. Beginning with Minnequa Works Credit Union’s return on assets (aka ROA), on this statistic the credit union performs approximately inline with the average comparable credit union. When we look at the year over year trends, we can see that ROA has been relatively stable given the 0.02% change. A credit union’s ROA is a good way of assessing how well the entity is using its assets to generate returns. 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 Minnequa Works Credit Union its delinquency rate is approximately inline with its peers and over the past 12 months the credit union’s delinquency rate has been relatively stable. The net worth ratio for the credit union is 12.1% and has declined compared with the prior year figure of 12.7%. 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.
Ultimately, after considering all of the relevant factors we rate Minnequa Works Credit Union 3.4 out of 5.0, which is very good. 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.