Safe and Sound

AUTO-OWNERS ASSOCIATES

LANSING, MI
5
Star Rating
AUTO-OWNERS ASSOCIATES is an NCUA-insured credit union founded in 1948 and currently based in LANSING, MI. Regulatory filings show the credit union having assets of $34.0 million, as of December 31, 2017.

With 5 full-time employees, the credit union holds loans and leases worth $8.5 million. AUTO-OWNERS ASSOCIATES's 3,084 members currently have $29.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, AUTO-OWNERS ASSOCIATES exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an a credit union's financial strength, capital is key. From a safety and soundness perspective, the higher the capital, the better.

AUTO-OWNERS ASSOCIATES exceeded the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, scoring 16 out of a possible 30 points.

AUTO-OWNERS ASSOCIATES's capitalization ratio of 16.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

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

A credit union with large numbers of these kinds of assets could eventually be forced to use capital to absorb losses, reducing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, diminishing earnings and elevating the risk of a failure in the future.

On Bankrate's test of asset quality, AUTO-OWNERS ASSOCIATES scored 40 out of a possible 40 points, beating out the national average of 38.09 points.

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. Earnings may be retained by the credit union, giving a boost to its capital cushion, or be used to deal with problematic loans, potentially making the credit union better able to withstand financial trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

AUTO-OWNERS ASSOCIATES scored 16 out of a possible 30 on Bankrate's earnings test, beating the national average of 10.11.

One sign that the credit union is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.