Safe and Sound

CHIPPEWA COUNTY

Sault Sainte Ma, MI
2
Star Rating
SAULT SAINTE MA, MI-based CHIPPEWA COUNTY is an NCUA-insured credit union founded in 1955. As of December 31, 2017, the credit union held assets of $27.4 million.

With 11 full-time employees, the credit union has amassed loans and leases worth $18.8 million. Its 3,511 members currently have $24.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CHIPPEWA COUNTY exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three important 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 bulwark against losses and provides protection for members during times of financial trouble for the credit union. Therefore, when it comes to measuring an a credit union's financial resilience, capital is useful. When looking at safety and soundness, more capital is better.

CHIPPEWA COUNTY received a score of 12 out of a possible 30 points on our test to measure capital adequacy, less than the national average of 15.65.

CHIPPEWA COUNTY had a capitalization ratio of 12.00 percent in our test, worse than the average for all credit unions, an indication that it's less well prepared for financial trouble than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as past-due loans.

Having a large number of these kinds of assets suggests a credit union may have to use capital to absorb losses, shrinking 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 increasing the risk of a future failure.

CHIPPEWA COUNTY scored 28 out of a possible 40 points on Bankrate's test of asset quality, lower than the national average of 38.09.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, lower than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability affects its long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's earnings test, CHIPPEWA COUNTY scored 2 out of a possible 30, falling short of the national average of 10.11.

The credit union had an earnings ratio of 0.00 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.