Safe and Sound

EDDY PAPER EMPLOYEES

WHITE PIGEON, MI
NR
Star Rating
EDDY PAPER EMPLOYEES is a WHITE PIGEON, MI-based, NCUA-insured credit union founded in 1955. As of December 31, 2017, the credit union held assets of $522,693.

The credit union holds loans and leases worth $345,309. Its 150 members currently have $467,615 in shares with the credit union.

Overall, Bankrate did not have enough information on this institution to give it a star rating. Keep reading for an analysis of how the credit union did on the three key criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial resilience, capital is essential. It acts as a cushion against losses and as protection for members when a credit union is struggling financially. From a safety and soundness perspective, more capital is better.

EDDY PAPER EMPLOYEES received a score of 12 out of a possible 30 points on our test to measure capital adequacy, less than the national average of 15.65.

EDDY PAPER EMPLOYEES's capitalization ratio of 12.00 percent in our test was less than the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as unpaid loans.

Having a large number of these types of assets means a credit union may have to use capital to cover losses, reducing its equity buffer. 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.

EDDY PAPER EMPLOYEES finished below the national average of 38.09 on Bankrate's test of asset quality, racking up 20 out of a possible 40 points .

Troubled assets made up 0.00 percent of EDDY PAPER EMPLOYEES's total assets in our test, lower than the national average and suggestive 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 may be retained by the credit union, expanding its capital cushion, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

EDDY PAPER EMPLOYEES scored 0 out of a possible 30 on Bankrate's test of earnings, failing to reach the national average of 10.11.

One indication that EDDY PAPER EMPLOYEES is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.