Safe and Sound

DETOUR DRUMMOND COMMUNITY

DRUMMOND ISLAND, MI
3
Star Rating
Founded in 1960, DETOUR DRUMMOND COMMUNITY is an NCUA-insured credit union based in DRUMMOND ISLAND, MI. The credit union holds assets of $32.8 million, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 10 full-time employees, the credit union currently holds loans and leases worth $15.1 million. Its 2,107 members currently have $28.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, DETOUR DRUMMOND COMMUNITY exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three important criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is important. It acts as a cushion against losses and provides protection for members during times of financial trouble for the credit union. When looking at safety and soundness, the more capital, the better.

DETOUR DRUMMOND COMMUNITY received a score of 14 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, below the national average of 15.65.

DETOUR DRUMMOND COMMUNITY had a capitalization ratio of 14.00 percent in our test, worse than the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.

A credit union with large numbers of these types of assets could eventually have to use capital to absorb losses, shrinking 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 interest for the credit union, decreasing earnings and increasing the chances of a failure in the future.

DETOUR DRUMMOND COMMUNITY scored 32 out of a possible 40 points on Bankrate's test of asset quality, lower than the national average of 38.09.

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

A credit union's ability to earn money affects its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, likely making the credit union more resilient in times of trouble. Conversely, losses reduce a credit union's ability to do those things.

DETOUR DRUMMOND COMMUNITY underperformed the average on Bankrate's earnings test, achieving a score of 4 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign 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.