Safe and Sound

GENISYS

AUBURN HILLS, MI
5
Star Rating
GENISYS is an AUBURN HILLS, MI-based, NCUA-insured credit union started in 1964. The credit union holds $2.32 billion in assets, according to June 30, 2017, regulatory filings.

With 399 full-time employees, the credit union currently holds loans and leases worth $1.39 billion. Its 191,911 members currently have $1.94 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, GENISYS exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three major criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and provides protection for members when a credit union is experiencing economic trouble. It follows then that when it comes to measuring an an institution's financial stability, capital is crucial. When looking at safety and soundness, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, GENISYS scored 20 out of a possible 30 points, above the national average of 15.26.

GENISYS had a capitalization ratio of 15.00 percent in our test, above the average for all credit unions, suggesting that it's stronger than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

Having lots of these types of assets may eventually require a credit union to use capital to cover losses, cutting down on its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in reduced earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, GENISYS scored 40 out of a possible 40 points, better than the national average of 38.15 points.

A lower-than-average ratio of problem assets of 2.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, likely making the credit union better prepared to withstand financial shocks. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's test of earnings, GENISYS scored 20 out of a possible 30, exceeding the national average of 10.31.

The credit union had an earnings ratio of 12.00 percent in our test, higher than the average for all credit unions, suggesting that it's beating its peers in this area.








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.