Overview of Parda Federal Credit UnionParda Federal Credit Union has been operating for 48 years, having first been established in the year 1974. The credit union mainly focuses on the provision of mortgages and lines of credit which represent 40% of its loans outstanding. In terms of its overall asset base, Parda Federal Credit Union is larger than 78% of credit unions in the country. Unlike banks, credit unions like Parda Federal Credit Union are not insured by the Federal Deposit Insurance Corporation (FDIC) but instead receive deposit insurance from the National Credit Union Administration (NCUA), which operates in a similar fashion to the FDIC. The company has a total of 8 branches and employs a total of 55 employees.
Who Can Join?Membership is open to any employee or retiree of an approved Select Employee Group (SEG) and their family members. Please go here to check if your employer is on the SEG list.
Overview of the Credit Union’s Assets and LiabilitiesThe credit union currently has total assets of $249 million, total deposits of $222 million and net loans outstanding of $95 million. On average its members had a total of $14,500 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 credit union also has a loan to deposit ratio of 43% 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. Moving on to the credit union’s loan portfolio, it mainly consists of the following: mortgages and lines of credit make up 40% of the portfolio and there is a total of $38 million outstanding and auto loans comprises 34% of the loan book and there is a total of $32 million outstanding.
Contact and Other Helpful Information
- Main Office Address: P.O. Box 5010, Rochester, MI 48308-5010
- Website: http://www.parda.com
- Phone: (248) 340-7000
- Charter Number: 21686
- Charter Year: 1974
- Employees: 55
- Routing Number: 272478910
- Membership: Parda Federal Credit Union has a membership base of 15,305 which is significantly smaller than the average credit union operating in the state of Michigan. The average credit union in the state has 27,971 members. Over the past three years, the credit union’s total base of members has declined by 6%.
Parda Federal Credit Union: Financial OverviewDetailed above is a chart showing the progression of four important balance sheet items over the past year for Parda Federal Credit Union. Assets and total loans for the credit union have expanded by 18.6% and decreased by 13.5%, respectively. In addition, the company’s mortgages and lines of credit, which as noted earlier is the largest portion of the loan book, has fallen by 3.6%. Lastly, the credit union’s deposits have grown by 22.0%. 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, Parda Federal Credit Union’s net worth stands at $27 million. This implies that the credit union has a net worth per member of $1,743 which is greater than the national average of $1,633.
Overview of the Credit Union’s Performance MetricsThe 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 Parda Federal 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 below the average comparable credit union and also that over the past year ROA has declined given the year over year change of 0.13%. 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. Parda Federal Credit Union has a delinquency rate that is above its peer group average and when compared with the prior year, we can see that it has improved substantially. Finally, the net worth ratio for the credit union is 10.7% which is well above its peer group average of 9.8%. This metric has declined on a year over year basis and stood at 12.6% a year ago. Based on the NCUA guidelines, the credit union is considered to be well capitalized.
ConclusionOur final rating for Parda Federal Credit Union, after assessing the credit union on what we consider to be the important metrics, is 3.0 out of 5.0, which is 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.
Other Credit Unions in Michigan
|Credit Union Name||Website||Total Members|
|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|
|Peninsula Federal Credit Union||http://peninsulafcu.com||13,832|
|Filer Credit Union||http://www.filercu.com||10,713|
|Aeroquip Credit Union||http://www.aeroquipcu.com||3,946|
|Michigan Coastal Credit Union||http://www.michigancoastal.com||2,944|
|Grand Trunk Credit Union||http://www.grandtrunkcu.com||2,730|