DESERT FINANCIAL

Charter #68713 | AZ

7B-10B (30 CUs) Large (64 CUs)
1 7B-10B in AZ

DESERT FINANCIAL has 9 strengths but faces 9 concerns

Key Strengths

Areas where this CU excels compared to peers

  • + Organic Growth Engine: Top 12.2% in tier
  • + Relationship Depth Leader: Top 12.8% in tier
  • + Wallet Share Momentum: Top 16.2% in tier
  • + Strong member growth: 5.3% YoY
  • + Loan Growth Rate: Top 0.0% in tier
  • + First Mortgage Concentration (%): Top 0.0% in tier
  • + Fee Income Per Member: Top 3.3% in tier
  • + Net Charge-Off Rate: Top 6.7% in tier
  • + Total Deposits: Top 6.7% in tier

Key Concerns

Areas that may need attention

  • - Growth-at-Risk: Bottom 2.1% in tier
  • - Credit Quality Pressure: Bottom 9.0% in tier
  • - Liquidity Overhang: Bottom 25.5% in tier
  • - Indirect Auto Dependency: Bottom 26.3% in tier
  • - Margin Compression: Bottom 28.6% in tier
  • - ROA 0.24% below tier average
  • - Efficiency ratio 12.92% above tier (higher cost structure)
  • - Loan-to-Share Ratio: Bottom 6.7% in tier
  • - Total Loans: Bottom 10.0% in tier

Core Metrics

As of 2025-Q3

Metric Current vs Tier Tier Avg State Avg (AZ) National Avg Tier Percentile
Members 497,868
+5.3% YoY+1.7% QoQ
 +38.6K 459,296
+3.8% YoY
 60,829
+5.9% YoY
 33,089
+6.1% YoY
 60th in tier
Assets $9.2B
+3.1% YoY+1.1% QoQ
 +$253.1M $8.9B
+1.2% YoY
 $1.0B
+8.7% YoY
 $547.7M
+7.8% YoY
 53rd in tier
Loans $4.9B
+15.0% YoY+4.6% QoQ
 $-1.5B $6.3B
+2.9% YoY
 $651.1M
+13.2% YoY
 $388.7M
+8.6% YoY
 Bottom 6.7% in tier
Deposits $8.3B
+7.4% YoY+0.3% QoQ
 +$865.6M $7.5B
+2.3% YoY
 $883.8M
+10.9% YoY
 $464.6M
+9.3% YoY
 Top 10.0% in tier
ROA 0.8%
-13.8% YoY-0.1% QoQ
 -0.2% 1.0%
+22.1% YoY
 0.8%
+38.7% YoY
 0.7%
+273.4% YoY
 27th in tier
NIM 2.6%
+17.5% YoY+2.6% QoQ
 -0.4% 3.0%
+11.5% YoY
 4.0%
+6.6% YoY
 3.7%
+5.0% YoY
 Bottom 20.0% in tier
Efficiency Ratio 76.6%
+5.0% YoY-0.4% QoQ
 +12.9% 63.7%
-2.2% YoY
 75.3%
-3.3% YoY
 79.1%
-3.3% YoY
 Top 10.0% in tier
Delinquency Rate 0.4%
+63.3% YoY+15.1% QoQ
 -0.3 0.7%
+10.8% YoY
 0.9%
+2.1% YoY
 1.2%
-0.9% YoY
 Bottom 23.3% in tier
Loan To Share 58.4%
+7.0% YoY+4.3% QoQ
 -27.0% 85.4%
+0.7% YoY
 71.1%
-3.6% YoY
 68.0%
-1.7% YoY
 Bottom 3.3% in tier
AMR $26,469
+4.5% YoY+0.2% QoQ
 $-7K $33,660
-2.9% YoY
 $19,058
+3.8% YoY
 $19,418
+1.3% YoY
 Bottom 23.3% in tier
CD Concentration 19.4%
+2.3% YoY+3.0% QoQ
 -9.4% 28.9%
-1.3% YoY
 16.8%
+14.1% YoY
 19.6%
+6.2% YoY
 Bottom 15.6% in tier
Indirect Auto % 22.6%
-9.0% YoY-1.2% QoQ
 +6.0% 16.6%
-10.3% YoY
 23.2%
-8.0% YoY
 7.9%
-2.9% YoY
 69th in tier

Signature Analysis

Strengths (3)

Organic Growth Engine

growth
#19 of 50 • Top 12.2% in tier

Growing membership while maintaining profitability. Healthy fundamentals in place.

Why This Signature
Member Growth (YoY): 5.34%
(Tier: 3.07%, National: 9.37%)
better than tier avg
Return on Assets: 0.79%
(Tier: 0.91%, National: 0.71%)
but worse than tier avg
Indirect Auto %: 22.62%
(Tier: 16.60%, National: 7.90%)
but worse than tier avg
50 of 64 Large CUs have this signature | 917 nationally
→ Stable (52→50 CUs) -2 CUs YoY | Rank worsening

Relationship Depth Leader

growth
#16 of 46 • Top 12.8% in tier

Average member relationship growing year-over-year. Increasing engagement suggests members are consolidating more business here.

Why This Signature
AMR Growth (YoY): 4.50%
(Tier: 2.82%, National: 4.19%)
better than tier avg
Share Draft per Member: $3.5K
(Tier: $3.2K, National: $2.0K)
better than tier avg
46 of 64 Large CUs have this signature | 1330 nationally
↑ Growing +18 CUs YoY | New qualifier

Wallet Share Momentum

growth
#20 of 46 • Top 16.2% in tier

Average member relationship growing year-over-year. Members are deepening their engagement.

Why This Signature
AMR Growth (YoY): 4.50%
(Tier: 2.82%, National: 4.19%)
better than tier avg
46 of 64 Large CUs have this signature | 1330 nationally
↑ Growing +18 CUs YoY | New qualifier

Concerns (5)

Growth-at-Risk

risk
#3 of 25 • Bottom 2.1% in tier

Loan portfolio growing while delinquencies are rising. Expansion with deteriorating credit quality needs attention.

Why This Signature
Loan Growth (YoY): 14.97%
(Tier: 4.99%, National: 36.38%)
but better than tier avg
Delinquency Change (YoY): 0.14% points
(Tier: 0.04% points, National: 0.07% points)
worse than tier avg
25 of 64 Large CUs have this signature | 646 nationally
↓ Shrinking -13 CUs YoY | Rank improving

Credit Quality Pressure

risk
#12 of 34 • Bottom 9.0% in tier

Delinquencies are rising year-over-year. Credit risk is building - they may need better underwriting tools.

Why This Signature
Delinquency Change (YoY): 0.14% points
(Tier: 0.04% points, National: 0.07% points)
worse than tier avg
34 of 64 Large CUs have this signature | 1002 nationally
↓ Shrinking -17 CUs YoY | Rank improving

Liquidity Overhang

risk
#15 of 24 • Bottom 25.5% in tier

Very high net worth ratio (>12%). Strong capital position may indicate opportunity to deploy capital more productively.

Why This Signature
Net Worth Ratio: 12.10%
(Tier: 11.62%, National: 14.51%)
but better than tier avg
Loan-to-Share Ratio: 58.40%
(Tier: 84.48%, National: 67.96%)
worse than tier avg
24 of 64 Large CUs have this signature | 691 nationally
↑ Growing +7 CUs YoY | New qualifier

Indirect Auto Dependency

risk
#27 of 33 • Bottom 26.3% in tier

Significant portion of loan portfolio in indirect auto (>15%). This concentration creates dependency on dealer relationships.

Why This Signature
Asset Growth (YoY): 3.07%
(Tier: 4.60%, National: 3.04%)
worse than tier avg
Indirect Auto %: 22.62%
(Tier: 16.60%, National: 7.90%)
worse than tier avg
Member Growth (YoY): 5.34%
(Tier: 3.07%, National: 9.37%)
but better than tier avg
33 of 64 Large CUs have this signature | 768 nationally
→ Stable (34→33 CUs) -1 CUs YoY | Rank worsening

Margin Compression

decline
#7 of 8 • Bottom 28.6% in tier

Strong profitability track record but margins eroding. Something changed - rising costs or falling yields need addressing.

Why This Signature
Return on Assets: 0.79%
(Tier: 0.91%, National: 0.71%)
worse than tier avg
ROA Change (YoY): -0.13% points
(Tier: 0.13% points, National: 0.05% points)
worse than tier avg
Total Assets: $9.17B
(Tier: $8.92B, National: $547.69M)
but better than tier avg
8 of 64 Large CUs have this signature | 169 nationally
→ Stable (8→8 CUs)

Metric Rankings

See how this credit union ranks across all tracked metrics compared to peers.

Strengths: Metrics in the top 25% (75th percentile or higher) | Concerns: Metrics in the bottom 25% (25th percentile or lower)

Comparing against 30 peers in tier

Top Strengths (9 metrics)

1
Loan Growth Rate
growth
Value: 14.97%
Peer Avg: 3.91%
#1 of 30 Top 0.0% in 7B-10B tier
1
First Mortgage Concentration (%)
balance_sheet
Value: 11.08%
Peer Avg: 38.48%
#1 of 30 Top 0.0% in 7B-10B tier
2
Fee Income Per Member
profitability
Value: $298.34
Peer Avg: $199.46
#2 of 30 Top 3.3% in 7B-10B tier
3
Net Charge-Off Rate
risk
Value: 0.22%
Peer Avg: 0.56%
#3 of 30 Top 6.7% in 7B-10B tier
3
Total Deposits
balance_sheet
Value: $8.32B
Peer Avg: $7.45B
#3 of 30 Top 6.7% in 7B-10B tier
5
Member Growth Rate
growth
Value: 5.34%
Peer Avg: 2.85%
#5 of 30 Top 13.3% in 7B-10B tier
6
Share Certificate Concentration (%)
balance_sheet
Value: 19.43%
Peer Avg: 26.92%
#6 of 30 Top 16.7% in 7B-10B tier
8
Deposit Growth Rate
growth
Value: 7.42%
Peer Avg: 4.48%
#8 of 30 Top 23.3% in 7B-10B tier
8
Total Delinquency Rate (60+ days)
risk
Value: 0.36%
Peer Avg: 0.67%
#8 of 30 Top 23.3% in 7B-10B tier

Top Weaknesses (5 metrics)

29
Loan-to-Share Ratio
balance_sheet
Value: 58.40%
Peer Avg: 85.44%
#29 of 30 Bottom 6.7% in 7B-10B tier
28
Efficiency Ratio
profitability
Value: 76.64%
Peer Avg: 63.73%
#28 of 30 Bottom 10.0% in 7B-10B tier
28
Total Loans
balance_sheet
Value: $4.86B
Peer Avg: $6.34B
#28 of 30 Bottom 10.0% in 7B-10B tier
26
Loan-to-Member Ratio (LMR)
engagement
Value: $9,759
Peer Avg: $15,544
#26 of 30 Bottom 16.7% in 7B-10B tier
24
Net Interest Margin (NIM)
profitability
Value: 2.60%
Peer Avg: 3.00%
#24 of 30 Bottom 23.3% in 7B-10B tier