Introduction to United 1st Federal Credit Union
United 1st Federal Credit Union has been operating for 79 years, having first been established in the year 1943. The credit union mainly focuses on the provision of auto loans which represent 51% of its loans outstanding. In terms of its overall asset base, United 1st Federal Credit Union is larger than 78% of credit unions in the country. Unlike banks, credit unions like United 1st 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 7 branches and employs a total of 88 employees.
Overview of the Credit Union’s Assets and Liabilities
The credit union currently has total assets of $243 million, total deposits of $217 million and net loans outstanding of $122 million. On average its members had a total of $8,174 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 average credit union in United 1st Federal Credit Union’s peer set has a loan to deposit ratio of approximately 63%. In comparison, United 1st Federal Credit Union has a loan to deposit ratio of 56% which is clearly lower 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 51% of the total and currently stands at $62 million, while there is $37 million of loans outstanding from mortgages and lines of credit which represents 30% of the credit union’s loan portfolio.
Contact and Other Helpful Information
- Main Office Address: 162 N Gross Rd, Kingsland, GA 31548-6229
- Website: http://www.united1st-cu.org
- Phone: (912) 729-2800
- Charter Number: 68715
- Charter Year: 1943
- Employees: 88
- Routing Number: 261271649
- Membership: On average, credit unions in Georgia each have 23,804 members while across the United States the equivalent figure is 25,779. By comparison, United 1st Federal Credit Union has total members of 26,549 which is greater than the average credit union in the state. Over the past two years, the credit union’s total membership has increased by 2%.
United 1st Federal Credit Union: Financial Overview
The above chart summarizes the trends in key balance sheet items for United 1st Federal Credit Union. First off, it is noteworthy that across the board, all four items have increased over the past year. The credit union’s assets have grown by 19.7% while its total loans have increased by 8.5%. In addition, the company’s auto loans have increased by 5.5% while its deposits have grown by 21.8%. 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. United 1st Federal Credit Union has a total net worth of $22 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 $812 which is below the national average of $1,606.
Overview of the Credit Union’s Performance Metrics
The chart above compares United 1st Federal 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 United 1st Federal Credit Union’s return on assets (aka ROA), on this statistic the credit union performs below the average comparable credit union. When we look at the year over year trends, we can see that ROA has improved given the 0.06% 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 below its peer group on this metric and compared with the prior year it has been relatively stable. 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 8.9% which is below its peer group average of 9.7%. This metric has declined on a year over year basis and stood at 10.0% a year ago. Based on the NCUA guidelines, the credit union is considered to be well capitalized.
Conclusion
Overall, we believe United 1st Federal Credit Union deserves a rating of 2.4 out of 5.0, which is 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.