Overview of Tri Cities Credit Union

Tri Cities Credit Union was first established in the year 1955 and is the 152nd largest credit union operating in the state of Michigan as measured by total assets. It is also larger than 49% 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 42% of its outstanding lending. Unlike banks, credit unions like Tri Cities 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 2 branches and employs a total of 11 employees. Tri Cities Credit Union is not to be confused with Tri Counties Bank, which we’ve reviewed separately.

Overview of the Credit Union’s Assets and Liabilities

Some of the key components of the credit union’s balance sheet are total assets of $48 million, total loans extended to customers of $43 million and customer deposits of $23 million. The average credit union in Tri Cities Credit Union’s peer set has a loan to deposit ratio of approximately 49%. In comparison, Tri Cities Credit Union has a loan to deposit ratio of 54% 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. Moving on to the credit union’s loan portfolio, it mainly consists of the following: auto loans make up 42% of the portfolio and there is a total of $10 million outstanding and mortgages and lines of credit comprises 39% of the loan book and there is a total of $9 million outstanding.

Contact and Other Helpful Information

  • Main Office Address: 905 Pennoyer Ave, Grand Haven, MI 49417
  • Website: http://www.tricu.org
  • Phone: (616) 842-6320
  • Charter Number: 62508
  • Charter Year: 1955
  • Employees: 11
  • Routing Number: 272480335
  • Membership: Credit unions in the state of Michigan have an average membership base of 27,640 compared with Tri Cities Credit Union which has total members of 3,917. Over the past three years, the credit union’s total base of members has declined by 2%.

Tri Cities Credit Union: Financial Overview

tri cities credit union-balance-sheet-metrics Detailed above is a chart showing the progression of four important balance sheet items over the past year for Tri Cities Credit Union. Assets and total loans for the credit union have expanded by 17.6% and increased by 6.6%, respectively. In addition, the company’s auto loans, which as noted earlier is the largest portion of the loan book, has decreased by 5.8%. Lastly, the credit union’s deposits have grown by 23.9%. ‘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. Tri Cities Credit Union has a total net worth of $5 million. This implies that the credit union has a net worth per member of $1,197 which is below the national average of $1,606.

Overview of the Credit Union’s Performance Metrics

tri cities credit union-selected-performance-metrics In the above chart we have displayed three statistics that are important in evaluating a credit union’s performance and shown how Tri Cities Credit Union compares on these metrics, in addition to detailing how the credit union performed on each metric in the prior year. Beginning with Tri Cities 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 given the 0.14% change. A credit union’s ROA is a good way of assessing how well the entity is using its assets to generate returns. 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. Tri Cities 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. The net worth ratio for the credit union is 9.9% and has declined compared with the prior year figure of 10.7%. The credit union is also below its peer group average of 10.6% on this metric. Finally, based on the NCUA guidelines, the company’s net worth ratio would classify it as well capitalized.

Conclusion

In conclusion, when we look at all the various factors and data we give Tri Cities Credit Union a 2.9 out of 5.0 rating, which we consider to be above average. As a final note, please remember that our rating is the product of a proprietary scoring methodology which uses nationwide data for credit unions and our survey work. Importantly, none of the work presented herein is intended to be investment advice or advice of any sort and is presented purely for informational purposes.

Other Credit Unions in Michigan

Credit Union Name Website Total Members
Lake Michigan http://www.lmcu.org 431,725
MSUF http://www.msufcu.org 321,315
Genisys http://www.genisyscu.org 249,535
DFCU Financial www.dfcufinancial.com 232,424
United https://www.unitedfcu.com 190,986
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
Parda Federal Credit Union http://www.parda.com 15,305
Peninsula Federal Credit Union http://peninsulafcu.com 13,832
Filer Credit Union http://www.filercu.com 10,713
GLFFCU http://www.glffcu.com 8,681
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