Safe and Sound

COMMUNITY FOCUS

BROWNSTOWN, MI
5
Star Rating
COMMUNITY FOCUS is an NCUA-insured credit union founded in 1960 and currently headquartered in BROWNSTOWN, MI. Regulatory filings show the credit union having assets of $53.0 million, as of December 31, 2017.

Members have $17.3 million on deposit tended by 15 full-time employees. With that footprint, the credit union currently holds loans and leases worth $17.3 million. COMMUNITY FOCUS's 4,849 members currently have $43.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, COMMUNITY FOCUS 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 major criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and provides protection for members during periods of financial instability for the credit union. Therefore, an institution's level of capital is a useful measurement of its financial resilience. When looking at safety and soundness, the more capital, the better.

COMMUNITY FOCUS did better than the national average of 15.65 points on our test to measure capital adequacy, achieving a score of 22 out of a possible 30 points.

COMMUNITY FOCUS had a capitalization ratio of 22.00 percent in our test, above the average for all credit unions, suggesting that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to estimate the impact of problem assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.

Having lots of these kinds of assets could eventually force a credit union to use capital to absorb losses, cutting down on its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a failure in the future.

COMMUNITY FOCUS 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 troubled 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 affects 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 able to withstand economic shocks. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's test of earnings, COMMUNITY FOCUS scored 8 out of a possible 30, below the national average of 10.11.

COMMUNITY FOCUS had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication that it's running ahead of 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.