Overview of Ocean State Credit Union

Ocean State Credit Union was first established in the year 1950 and is the 7th largest credit union operating in the state of Rhode Island as measured by total assets. It is also larger than 82% 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 29% of its outstanding lending. Ocean State 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 Ocean State Credit Union’s operations. The company has a total of 4 branches and employs a total of 58 employees.

Discussion of the Credit Union’s Operations

Some of the key components of the credit union’s balance sheet are total assets of $338 million, total loans extended to customers of $281 million and customer deposits of $251 million. The average credit union in Ocean State Credit Union’s peer set has a loan to deposit ratio of approximately 63%. In comparison, Ocean State Credit Union has a loan to deposit ratio of 89% which is clearly higher 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, Ocean State Credit Union’s loan portfolio mainly consists of mortgages and lines of credit and other real estate loans which represent 29% and 7% of its loan book and had outstanding balances of $72 million and $18 million, respectively.

Contact and Other Helpful Information

  • Main Office Address: 2006 Nooseneck Hill Road, Coventry, RI 2816
  • Website: http://www.oceanstatecu.org
  • Phone: (401) 397-1900
  • Charter Number: 66595
  • Charter Year: 1950
  • Employees: 58
  • Routing Number: 211573326
  • Membership: Credit unions in the state of Rhode Island have an average membership base of 25,848 compared with Ocean State Credit Union which has total members of 23,521. Over the past three years, the credit union’s total base of members has increased by 3%.

Ocean State Credit Union: Financial Overview

ocean state credit union-balance-sheet-metrics

Detailed above is a chart showing the progression of four important balance sheet items over the past year for Ocean State Credit Union. Assets and total loans for the credit union have expanded by 4.5% and grown by 5.3%, respectively. In addition, the company’s mortgages and lines of credit, which as noted earlier is the largest portion of the loan book, has decreased by 11.6%. Lastly, the credit union’s deposits have grown by 5.5%. ‘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. Ocean State Credit Union has a total net worth of $35 million. This implies that the credit union has a net worth per member of $1,486 which is below the national average of $1,606.

Overview of the Credit Union’s Performance Metrics

ocean state credit union-selected-performance-metrics

The chart above compares Ocean State 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. Beginning with Ocean State Credit Union’s return on assets (aka ROA), on this statistic the credit union performs well above the average comparable credit union. When we look at the year over year trends, we can see that ROA has improved substantially given the 0.60% change. A credit union’s ROA is a good way of assessing how well the entity is using its assets to generate returns. 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 well above its peer group on this metric and compared with the prior year it has improved substantially. 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 10.3% and has improved substantially compared with the prior year figure of 9.2%. 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.


In conclusion, when we look at all the various factors and data we give Ocean State Credit Union a 2.7 out of 5.0 rating, which we consider to be above average. 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.