TransFCU: Overview of the Credit Union

TransFCU was first established in the year 1939 and is the 31st largest credit union operating in the state of Virginia as measured by total assets. It is also larger than 80% 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 37% of its outstanding lending. TransFCU’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 TransFCU’s operations. The company has a total of 4 branches and employs a total of 43 employees.

Overview of the Credit Union’s Assets and Liabilities

The credit union has total assets of $283 million. It has a deposit base of $256 million which works out to $12,243 of deposits per member compared with the state-wide average of $11,388 and national average of $13,595. TransFCU also has net loans outstanding of $197 million. In addition, the credit union has a loan to deposit ratio of 77%, which is higher than its peer group average of 63%. Generally speaking, a lower loan to deposit ratio is better as it implies that the credit union is funding more of its lending activities with deposits. Moving on to the credit union’s loan portfolio, it mainly consists of the following: mortgages and lines of credit make up 37% of the portfolio and there is a total of $74 million outstanding and other real estate loans comprises 28% of the loan book and there is a total of $55 million outstanding.

Contact and Other Helpful Information

  • Main Office Address: P.O.Box 25947, Alexandria, VA 22313
  • Website: http://www.transfcu.com
  • Phone: (202) 366-9400
  • Charter Number: 3140
  • Charter Year: 1939
  • Employees: 43
  • Routing Number: 254075399
  • Membership: TransFCU has a membership base of 20,907 which is significantly smaller than the average credit union operating in the state of Virginia. The average credit union in the state has 148,141 members. Over the past three years, the credit union’s total base of members has increased by 2%.

TransFCU: Financial Overview

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As shown in the above chart, TransFCU’s assets have increased by 3.6% over the past year, while its mortgages and lines of credit – which is its largest category of lending – have grown by 63.0% over the past year. Furthermore, the company’s deposits have grown by 10.7% while its total loans have increased by 19.2%. 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. TransFCU has a total net worth of $27 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 $1,275 which is below the national average of $1,606.

Overview of the Credit Union’s Performance Metrics

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The chart above compares TransFCU’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. Starting with the company’s return on assets, on this metric TransFCU is below the average credit union in its peer set and over the past year ROA has improved with a total change of 0.05%. 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 TransFCU its delinquency rate is below its peers and over the past 12 months the credit union’s delinquency rate has improved. The net worth ratio for the credit union is 9.4% and has declined compared with the prior year figure of 9.6%. The credit union is also below 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.

Conclusion

After factoring in all the relevant information and data, our final rating for TransFCU is 2.4 out of 5.0, which is 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.