Safe and Sound

ADVENTURE

GRAND RAPIDS, MI
4
Star Rating
GRAND RAPIDS, MI-based ADVENTURE is an NCUA-insured credit union started in 1936. The credit union holds assets of $364.9 million, according to June 30, 2017, regulatory filings.

Members have $299.1 million on deposit tended by 136 full-time employees. With that footprint, the credit union holds loans and leases worth $299.1 million. Its 32,231 members currently have $272.3 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, ADVENTURE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is essential. It works as a buffer against losses and as protection for members during times of economic instability for the credit union. From a safety and soundness perspective, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, ADVENTURE achieved a score of 16 out of a possible 30 points, beating the national average of 15.26.

ADVENTURE's capitalization ratio of 12.00 percent in our test was lower than the average for all credit unions, an indication that it's on less solid financial footing than its peers.

Asset Quality Score

Bankrate uses this test to estimate the impact of problem assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having large numbers of these types of assets may eventually require a credit union to use capital to cover losses, diminishing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, diminishing earnings and elevating the risk of a future failure.

ADVENTURE exceeded the national average of 38.15 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

A lower-than-average ratio of problem assets of 4.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money affects its safety and soundness. Earnings can be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's earnings test, ADVENTURE scored 0 out of a possible 30, below the national average of 10.31.

One indication that ADVENTURE is running behind its peers in this area was its earnings ratio of 0.00 percent in our test, worse than the average for all credit unions.

WHAT IS SAFE & SOUND?

Bankrate.com's Safe & Sound Ratings provide a star rating system to evaluate the current financial status of financial institutions. The information gathered about banks, credit unions and thrifts is updated as set forth in the Terms of Use of Safe & Sound Ratings and Reports. The Safe & Sound Ratings information is grouped by categories of banks, thrifts and credit unions.

Scoring methodology

Bankrate.com evaluates the financial condition of institutions and assigns a one- to five-star rating for each with five stars representing the highest rating. Institutions with satisfactory performance will generally receive a rating of three or more stars. The majority of institutions fall into the three- to four-star range. An institution with an "NR" rating may be too new to rate or may have limited the publicly available information in their regulatory filings. The "NR" is not an indication of financial strength or weakness. The Safe & Sound rating is believed to be reliable, but the information is not guaranteed. In addition, events since the information was collected may have altered the institution's financial condition.