Safe and Sound

FEDERAL EMPLOYEES OF CHIPPEWA CNTY

SAULT SAINTE MA, MI
4
Star Rating
Founded in 1957, FEDERAL EMPLOYEES OF CHIPPEWA CNTY is an NCUA-insured credit union headquartered in SAULT SAINTE MA, MI. The credit union holds assets of $10.8 million, according to December 31, 2017, regulatory filings.

Members have $9.1 million on deposit tended by 3 full-time employees. With that footprint, the credit union has amassed loans and leases worth $9.1 million. FEDERAL EMPLOYEES OF CHIPPEWA CNTY's 1,536 members currently have $9.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FEDERAL EMPLOYEES OF CHIPPEWA CNTY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three important criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members when a credit union is experiencing economic instability. It follows then that a credit union's level of capital is an important measurement of its financial fortitude. When it comes to safety and soundness, more capital is better.

FEDERAL EMPLOYEES OF CHIPPEWA CNTY fell below the national average of 15.65 on our test to measure capital adequacy, scoring 10 out of a possible 30 points.

FEDERAL EMPLOYEES OF CHIPPEWA CNTY had a capitalization ratio of 10.00 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

Bankrate uses this test to estimate the effect of problem assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

Having extensive holdings of these kinds of assets may eventually force a credit union to use capital to absorb losses, reducing its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, decreasing earnings and elevating the chances of a future failure.

On Bankrate's asset quality test, FEDERAL EMPLOYEES OF CHIPPEWA CNTY scored 40 out of a possible 40 points, beating out the national average of 38.09 points.

Earnings score

A credit union's earnings performance affects its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, likely making the credit union better able to withstand financial trouble. Obviously, credit unions that are losing money are less able to do those things.

FEDERAL EMPLOYEES OF CHIPPEWA CNTY scored 14 out of a possible 30 on Bankrate's earnings test, beating out the national average of 10.11.

One indication that FEDERAL EMPLOYEES OF CHIPPEWA CNTY is running ahead of 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.