Safe and Sound

CONSUMERS

OSHTEMO, MI
5
Star Rating
OSHTEMO, MI-based CONSUMERS is an NCUA-insured credit union founded in 1964. Regulatory filings show the credit union having $934.3 million in assets, as of December 31, 2017.

Thanks to the work of 265 full-time employees, the credit union currently holds loans and leases worth $827.8 million. Its 86,268 members currently have $751.2 million in shares with the credit union.

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

WHAT IS
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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of a credit union's financial fortitude. It works as a cushion against losses and as protection for members when a credit union is struggling financially. When it comes to safety and soundness, more capital is better.

CONSUMERS received a score of 10 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, lower than the national average of 15.65.

CONSUMERS's capitalization ratio of 10.00 percent in our test was lower 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 is intended to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as unpaid loans.

A credit union with extensive holdings of these kinds of assets could eventually be forced to use capital to cover losses, diminishing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, decreasing earnings and elevating the chances of a failure in the future.

On Bankrate's asset quality test, CONSUMERS scored 40 out of a possible 40 points, better than the national average of 38.09 points.

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

A credit union's profitability has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, likely making the credit union better prepared to withstand financial trouble. Obviously, credit unions that are losing money are less able to do those things.

CONSUMERS scored 22 out of a possible 30 on Bankrate's earnings test, beating out the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, an indication 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.