Safe and Sound

DENNISON

COOPERSVILLE, MI
2
Star Rating
COOPERSVILLE, MI-based DENNISON is an NCUA-insured credit union started in 1953. As of June 30, 2017, the credit union held assets of $303,673.

DENNISON's 130 members currently have $244,629 in shares with the credit union. With that footprint, the credit union holds loans and leases worth $172,070.

Overall, Bankrate believes that, as of June 30, 2017, DENNISON exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial stability, capital is essential. It works as a bulwark against losses and provides protection for members when a credit union is experiencing economic instability. When looking at safety and soundness, the higher the capital, the better.

DENNISON achieved a score of 30 out of a possible 30 points on our test to measure capital adequacy, beating out the national average of 15.26.

DENNISON had a capitalization ratio of 19.00 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

This test's purpose is to estimate how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as past-due mortgages.

A credit union with large numbers of these types of assets could eventually have to use capital to absorb losses, reducing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in diminished earnings and potentially more risk of a failure in the future.

DENNISON finished below the national average of 38.15 on Bankrate's test of asset quality, racking up 8 out of a possible 40 points .

Troubled assets made up 64.00 percent of the credit union's total assets in our test, above the national average and a potential area of concern.

Earnings score

A credit union's ability to earn money affects its long-term survivability. Earnings may be retained by the credit union, giving a boost to its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses take away from a credit union's ability to do those things.

DENNISON fell short of the national average on Bankrate's test of earnings, achieving a score of 2 out of a possible 30.

One sign that DENNISON is lagging behind its peers in this area was its earnings ratio of 0.00 percent in our test, less than 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.