Safe and Sound

CORNERSTONE COMMUNITY FINANCIAL

AUBURN HILLS, MI
4
Star Rating
CORNERSTONE COMMUNITY FINANCIAL is an NCUA-insured credit union started in 1951 and currently headquartered in AUBURN HILLS, MI. Regulatory filings show the credit union having assets of $270.7 million, as of December 31, 2017.

With 64 full-time employees, the credit union currently holds loans and leases worth $239.8 million. CORNERSTONE COMMUNITY FINANCIAL's 22,752 members currently have $219.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CORNERSTONE COMMUNITY FINANCIAL exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three key criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members when a credit union is struggling financially. Therefore, an institution's level of capital is a valuable measurement of its financial resilience. When it comes to safety and soundness, the higher the capital, the better.

CORNERSTONE COMMUNITY FINANCIAL scored 16 out of a possible 30 points on our test to measure capital adequacy, better than the national average of 15.65.

CORNERSTONE COMMUNITY FINANCIAL's capitalization ratio of 16.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

Bankrate uses this test to estimate the impact of troubled assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with extensive holdings of these kinds of assets could eventually be forced to use capital to cover losses, diminishing 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, resulting in lower earnings and potentially more risk of a failure in the future.

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

A lower-than-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 earning money affects its safety and soundness. Earnings can be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's test of earnings, CORNERSTONE COMMUNITY FINANCIAL scored 12 out of a possible 30, better than the national average of 10.11.

One indication that the credit union is beating its peers in this area was its earnings ratio of 0.00 percent in our test, above the average for all credit unions.

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.