Safe and Sound

BIRMINGHAM-BLOOMFIELD

BIRMINGHAM, MI
4
Star Rating
BIRMINGHAM-BLOOMFIELD is a BIRMINGHAM, MI-based, NCUA-insured credit union started in 1931. As of December 31, 2017, the credit union held assets of $69.4 million.

Members have $51.7 million on deposit tended by 15 full-time employees. With that footprint, the credit union currently holds loans and leases worth $51.7 million. BIRMINGHAM-BLOOMFIELD's 5,451 members currently have $63.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BIRMINGHAM-BLOOMFIELD exhibited a good condition, earning 4 out of 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 U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of a credit union's financial fortitude. It acts as a bulwark against losses and as protection for members when a credit union is experiencing financial trouble. From a safety and soundness perspective, the more capital, the better.

BIRMINGHAM-BLOOMFIELD received a score of 8 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, less than the national average of 15.65.

BIRMINGHAM-BLOOMFIELD appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 8.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

This test's purpose is to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as past-due mortgages.

Having a large number of these types of assets could eventually require a credit union to use capital to absorb losses, shrinking 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, resulting in diminished earnings and potentially more risk of a future failure.

BIRMINGHAM-BLOOMFIELD beat out the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 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 making money has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or use them to address problematic loans, likely making the credit union more resilient in tough times. However, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, BIRMINGHAM-BLOOMFIELD scored 18 out of a possible 30, exceeding the national average of 10.11.

One indication that BIRMINGHAM-BLOOMFIELD 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.