Safe and Sound

EASTPOINTE COMMUNITY

EASTPOINTE, MI
3
Star Rating
Founded in 1950, EASTPOINTE COMMUNITY is an NCUA-insured credit union headquartered in EASTPOINTE, MI. Regulatory filings show the credit union having $9.3 million in assets, as of December 31, 2017.

Members have $4.9 million on deposit tended by 3 full-time employees. With that footprint, the credit union currently holds loans and leases worth $4.9 million. EASTPOINTE COMMUNITY's 1,758 members currently have $8.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, EASTPOINTE COMMUNITY exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three key criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of an institution's financial resilience. It works as a cushion against losses and affords protection for members during times of financial instability for the credit union. From a safety and soundness perspective, more capital is better.

On our test to measure the adequacy of a credit union's capital, EASTPOINTE COMMUNITY received a score of 8 out of a possible 30 points, coming in below the national average of 15.65.

EASTPOINTE COMMUNITY had a capitalization ratio of 8.00 percent in our test, below the average for all credit unions, a sign that it could be less resilient in a crisis 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 unpaid mortgages.

Having large numbers of these types of assets could eventually require a credit union to use capital to absorb losses, cutting down on its buffer 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, resulting in depressed earnings and potentially more risk of a future failure.

EASTPOINTE COMMUNITY scored above the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

A lower-than-average ratio of troubled 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 making money has an effect on its long-term survivability. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in tough times. However, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, EASTPOINTE COMMUNITY scored 4 out of a possible 30, lower than the national average of 10.11.

EASTPOINTE COMMUNITY had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign that it's beating 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.