Safe and Sound

EDUCATION PLUS

MONROE, MI
5
Star Rating
MONROE, MI-based EDUCATION PLUS is an NCUA-insured credit union started in 1957. Regulatory filings show the credit union having assets of $115.5 million, as of December 31, 2017.

Members have $68.7 million on deposit tended by 21 full-time employees. With that footprint, the credit union currently holds loans and leases worth $68.7 million. EDUCATION PLUS's 14,633 members currently have $96.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, EDUCATION PLUS exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three important criteria Bankrate used to score U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members during periods of economic trouble for the credit union. It follows then that when it comes to measuring an a credit union's financial resilience, capital is crucial. From a safety and soundness perspective, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, EDUCATION PLUS racked up 24 out of a possible 30 points, beating the national average of 15.65.

EDUCATION PLUS had a capitalization ratio of 24.00 percent in our test, better than the average for all credit unions, a sign that it's more well prepared for 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.

Having lots of these types of assets means a credit union may eventually have to use capital to cover losses, reducing its cushion 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 failure in the future.

EDUCATION PLUS exceeded the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

A lower-than-average ratio of problem 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 has an effect on its long-term survivability. Earnings can be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, potentially making the credit union better prepared to withstand economic trouble. However, credit unions that are losing money have less ability to do those things.

EDUCATION PLUS received above-average marks on Bankrate's earnings test, achieving a score of 18 out of a possible 30.

One indication that the credit union is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.