Safe and Sound

CONSUMERS PROFESSIONAL

LANSING, MI
5
Star Rating
CONSUMERS PROFESSIONAL is an NCUA-insured credit union founded in 1953 and currently headquartered in LANSING, MI. The credit union holds $74.0 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the work of 16 full-time employees, the credit union has amassed loans and leases worth $46.3 million. CONSUMERS PROFESSIONAL's 5,930 members currently have $61.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CONSUMERS PROFESSIONAL exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to grade 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 an important measurement of a credit union's financial strength. It acts as a bulwark against losses and as protection for members during periods of financial instability for the credit union. When it comes to safety and soundness, more capital is better.

CONSUMERS PROFESSIONAL beat out the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, racking up 24 out of a possible 30 points.

CONSUMERS PROFESSIONAL had a capitalization ratio of 24.00 percent in our test, better than the average for all credit unions, suggesting that it's stronger than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid mortgages.

A credit union with large numbers of these types of assets could eventually be required to use capital to absorb losses, reducing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, pushing down earnings and elevating the chances of a future failure.

CONSUMERS PROFESSIONAL scored 40 out of a possible 40 points on Bankrate's asset quality test, exceeding the national average of 38.09.

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

Earnings score

How successful a credit union is at earning money affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand economic shocks. Conversely, losses take away from a credit union's ability to do those things.

On Bankrate's test of earnings, CONSUMERS PROFESSIONAL scored 8 out of a possible 30, less than the national average of 10.11.

CONSUMERS PROFESSIONAL had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting 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.