Overview of Old Hickory Credit Union
Old Hickory Credit Union was first established in the year 1934 and is the 21st largest credit union operating in the state of Tennessee as measured by total assets. It is also larger than 81% 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 48% 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 7 branches and employs a total of 78 employees.
Who Can Join?
In order to qualify for membership, you must live, work, or worship in the counties of Davidson, Sumner, Robertson, or Wilson or in the communities of Smyrna or La Vergne. Individuals are also eligible for membership if they are employed by any of the credit union’s Select Employee Groups or are related to a current member by blood or marriage.
Overview of the Credit Union’s Assets and Liabilities
The credit union has total assets of $313 million. It has a deposit base of $285 million which works out to $13,799 of deposits per member compared with the state-wide average of $12,702 and national average of $13,804. Old Hickory Credit Union also has net loans outstanding of $196 million. The average credit union in Old Hickory Credit Union’s peer set has a loan to deposit ratio of approximately 63%. In comparison, Old Hickory Credit Union has a loan to deposit ratio of 69% 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. Taking a closer look at the credit union’s loan portfolio, we see that auto loans represent 48% of the total and currently stands at $94 million, while there is $84 million of loans outstanding from mortgages and lines of credit which represents 43% of the credit union’s loan portfolio.
Contact and Other Helpful Information
- Main Office Address: Po Box 140478, Nashville, TN 37214
- Website: http://www.ohcu.org
- Phone: (615) 847-4043
- Charter Number: 67982
- Charter Year: 1934
- Employees: 78
- Routing Number: 264181448
- Membership: The credit union has a membership base of 20,643 which is greater than the average credit union operating within the state. Credit unions in Tennessee each have on average 18,398 members. Over the past two years, the credit union’s total membership has increased by 4%.
Old Hickory Credit Union: Financial Overview
Detailed above is a chart showing the progression of four important balance sheet items over the past year for Old Hickory Credit Union. Assets and total loans for the credit union have expanded by 13.9% and grown by 16.8%, respectively. In addition, the company’s auto loans, which as noted earlier is the largest portion of the loan book, has expanded by 46.1%. Lastly, the credit union’s deposits have increased by 15.1%. The net worth of a credit union provides us with an idea of how the credit union has performed over the years. It is the total value that the credit union has created for its members since inception. Old Hickory Credit Union has a total net worth of $26 million. This implies that the credit union has a net worth per member of $1,272 which is below the national average of $1,633.
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 Old Hickory 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 approximately inline with the average comparable credit union and also that over the past year ROA has improved substantially given the year over year change of 0.40%. 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. Finally, the net worth ratio for the credit union is 8.4% which is below its peer group average of 9.8%. This metric has declined on a year over year basis and stood at 8.9% a year ago. Based on the NCUA guidelines, the credit union is considered to be well capitalized.
Overall, we believe Old Hickory Credit Union deserves a rating of 2.7 out of 5.0, which is above 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.