OnPoint saw profit cut in half in 2010
Our quarterly look at the financials of OnPoint Community Credit Union, designed to give us a picture of the state of the Portland-area economy, reveals a tough year in 2010 but a stable fourth quarter.
OnPoint's net income for 2010 was $13,871,613, down 51.19% from $28,419,382 in 2009. Operating expenses jumped from $56,459,380 in 2009 to $75,317,579 in 2010 -- a 33.4% increase. This included a 77.13% increase ($2,743,397) in premiums and expenses relating to the nationwide insurance system that backs up credit unions, including rescuing weak ones. Another part of OnPoint's decreased profit was the $22,514,914 in loans it wrote off in 2010, compared with $19,378,445 in 2009 -- a 16.19% increase.
Here are the balance sheet numbers, as recently filed with the National Credit Union Administration:
|Item||12/31/09||9/30/10||12/31/10||Quarterly increase (decrease)||12-month increase (decrease)|
|Federal agency securities||$285,152,450||$505,421,759||$517,311,741||2.35%||81.42%|
|Total reportable delinquency - total delinquent loans||$22,551,519||$29,353,063||$28,623,943||(2.48%)||26.93%|
|Total reportable delinquency - indirect lending||$4,449,517||$3,055,264||$2,522,542||(17.44%)||(43.31%)|
|Total outstanding loan balances subject to bankruptcies||$29,565,449||$25,828,172||$18,544,050||(28.2%)||(37.28%)|
|Ratio of delinquent loans to total loans (percent)||1.06||1.46||1.45|
|Ratio of total delinquent loans to net worth (percent)||8.73||11.04||10.52|
Delinquent loans are those delinquent for two months or more.
In the fourth quarter of 2010, deposits decreased from $2,488,675,931 to $2,473,555,611 -- a 0.61% decrease and a second consecutive down quarter. Deposits at the end of 2009 were $2,381,752,154, and thus for the year 2010, deposits were up 3.85%.
That brings us to our comparison of some of OnPoint's financial data with that of three other Oregon-based credit unions: Unitus here in Portland, First Tech in Beaverton, and Oregon Community down in Eugene.
One number that we've been tracking for the group has been the 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 credit unions in that department at three recent reporting dates:
Another ratio that we've been watching is delinquent loans to net worth. Here are the percentages for the group on that score:
Finally, here are the 2010 net income (loss) figures for the group, worth noting for the trends. All four credit unions took insurance charges in 2010, which are reflected in these numbers:
It's interesting that First Tech had a saggy year, just as its proposed merger into Addison Avenue Credit Union in Palo Alto was being approved. It will be interesting to see how the combined companies perform going forward, although it will doubtlessly be difficult to make a meaningful comparison to past performance for a while. Meanwhile, little Oregon Community and Unitus bounced back strongly from bad 2009's, whereas OnPoint declined.