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Thursday, November 5, 2009

On beyond OnPoint

Our blog posts about the quarterly results at OnPoint Community Credit Union -- a Portland-based financial institution that we consider at least some indicator of the state of the area's economy -- have led readers from time to time to request comparisons of OnPoint results with those of other credit unions. We've resisted that invitation on a number of grounds -- mostly because we're not really an expert on financial institutions. We've been pulling numbers off the voluminous reports filed with the regulators with interested but highly untrained eyes. Besides, it's a time-consuming deal.

But the challenge has been too good to keep down, and so with the important caution that we are not expert in these matters, just for kicks we'll compare some of OnPoint's financial data with that of three other Oregon-based credit unions that readers have mentioned: Unitus here in Portland, First Tech in Beaverton, and Oregon Community down in Eugene.

One number that we've been tracking for OnPoint has been its ratio of delinquent loans (two months or more) to total loans -- the higher the number, the worse the portfolio from a delinquency standpoint. Here are the percentages for all four of the credit unions in that department:

Credit union9/30/086/30/099/30/09
First Tech0.750.961.12
Oregon Community0.531.131.87

Another ratio that we've been watching at OnPoint is delinquent loans to net worth. Here are the percentages for the whole group on that score:

Credit Union9/30/086/30/099/30/09
First Tech5.226.066.98
Oregon Community5.7612.6321.41

The side-by-side reviews turned up one curiosity: Not all of the credit unions are accounting for the industry's deposit insurance troubles in exactly the same way. OnPoint and Oregon Community both showed millions in "stabilization expenses" for the first time this year on their third quarter financial reports, whereas First Tech and Unitus had been showing that expense since the first quarter of the year.

Finally, let's take a gander at the year-to-date net income (loss) figures for the group over the first three quarters. Although given their varying sizes, we're likely talking apples and oranges, the trends are probably worth comparing:

Credit Union9/30/086/30/099/30/09
First Tech$11,004,579$15,679,047$19,083,328
Oregon Community$2,276,125($1,600,252)($1,663,273)

You wanted comparisons? Well, there you have some, folks. Obviously, of the group, Oregon Community has got the biggest delinquent loan problems, is reporting its delinquencies more conservatively than the other three, or both. Relatively speaking, First Tech appears to paint the rosiest picture of the four.

If this sort of discussion makes you want to hunt around through the credit unions' financial reports yourself, just head over here and get started. Once you have the identification number of the institution you're looking for, lots of data can be gleaned here.

Comments (2)

So what do these select numbers mean beyond being a barometer for the economy of the Portland Metro Area? Does the 10.05 mean that OnPoint has delinquent loans amounting to 10% of OnPoint's entire net worth?

Another issue, are these numbers comparable to small banks such as Umpqua Bank? If so, how are the credit unions performing in comparison? Who will go bankrupt first?

Finally, with nonprofit loving types, tax payer paid for teachers, and other government bureaucrats putting their money into these financial institutions, what is the likelihood that one of these organizations will fail? Will the FDIC clean up the mess? Will tax initiatives usher forth to save one of these?


Jack is really on to something here, it says to me, BUY GOLD.

The job market better get better soon,or some of these places will not look to good by the 2-3 quarter of 2010.

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