Safe and Sound

ADVENTURE

GRAND RAPIDS, MI
3
Star Rating
Started in 1936, ADVENTURE is an NCUA-insured credit union headquartered in GRAND RAPIDS, MI. As of December 31, 2017, the credit union had assets of $385.7 million.

With 106 full-time employees, the credit union currently holds loans and leases worth $309.8 million. Its 30,803 members currently have $287.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ADVENTURE exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three major criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and provides protection for members when a credit union is struggling financially. Therefore, an institution's level of capital is a useful measurement of its financial resilience. From a safety and soundness perspective, more capital is better.

ADVENTURE received a score of 14 out of a possible 30 points on our test to measure capital adequacy, failing to reach the national average of 15.65.

ADVENTURE had a capitalization ratio of 14.00 percent in our test, worse than the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the effect of problem assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.

Having large numbers of these kinds of assets could eventually require a credit union to use capital to absorb losses, shrinking its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, decreasing earnings and increasing the risk of a future failure.

On Bankrate's test of asset quality, ADVENTURE scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, less than the national average and suggestive 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, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially making the credit union better prepared to withstand economic trouble. Obviously, credit unions that are losing money are less able to do those things.

ADVENTURE fell behind the national average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

ADVENTURE had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, an indication that it's outperforming 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.