Safe and Sound

CHRISTIAN FINANCIAL

ROSEVILLE, MI
5
Star Rating
Founded in 1967, CHRISTIAN FINANCIAL is an NCUA-insured credit union headquartered in ROSEVILLE, MI. The credit union holds assets of $381.3 million, according to December 31, 2017, regulatory filings.

Members have $267.6 million on deposit tended by 115 full-time employees. With that footprint, the credit union holds loans and leases worth $267.6 million. CHRISTIAN FINANCIAL's 42,209 members currently have $338.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CHRISTIAN FINANCIAL exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union faired on the three important criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of an institution's financial resilience. It acts as a bulwark against losses and affords protection for members during times of financial instability for the credit union. When looking at safety and soundness, the more capital, the better.

CHRISTIAN FINANCIAL fell below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, achieving a score of 12 out of a possible 30 points.

CHRISTIAN FINANCIAL appears to be weaker than its peers in this area, with a capitalization ratio of 12.00 percent in our test, below the average for all credit unions.

Asset Quality Score

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

A credit union with extensive holdings of these types of assets could eventually have to use capital to absorb losses, shrinking its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, decreasing earnings and increasing the chances of a future failure.

CHRISTIAN FINANCIAL scored 40 out of a possible 40 points on Bankrate's asset quality test, beating the national average of 38.09.

Troubled assets made up 0.00 percent of CHRISTIAN FINANCIAL's total assets in our test, lower than the national average and 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. Earnings can be retained by the credit union, expanding its capital buffer, or be used to deal with problematic loans, likely making the credit union better prepared to withstand financial shocks. Losses, on the other hand, reduce a credit union's ability to do those things.

CHRISTIAN FINANCIAL scored 18 out of a possible 30 on Bankrate's earnings test, exceeding the national average of 10.11.

CHRISTIAN FINANCIAL had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign 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.