Safe and Sound

FINANCIAL PLUS

FLINT, MI
4
Star Rating
FLINT, MI-based FINANCIAL PLUS is an NCUA-insured credit union started in 1952. The credit union holds assets of $520.5 million, according to December 31, 2017, regulatory filings.

Members have $379.0 million on deposit tended by 169 full-time employees. With that footprint, the credit union currently holds loans and leases worth $379.0 million. FINANCIAL PLUS's 55,730 members currently have $443.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FINANCIAL PLUS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and as protection for members during periods of financial instability for the credit union. It follows then that when it comes to measuring an an institution's financial fortitude, capital is crucial. When looking at safety and soundness, the more capital, the better.

FINANCIAL PLUS beat out the national average of 15.65 points on our test to measure capital adequacy, receiving a score of 18 out of a possible 30 points.

FINANCIAL PLUS appears to be stronger than its peers, with a capitalization ratio of 18.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

This test's purpose is to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as past-due mortgages.

Having large numbers of these kinds of assets means a credit union may have 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 no longer earning money, resulting in lower earnings and potentially more risk of a failure in the future.

FINANCIAL PLUS fell below the national average of 38.09 on Bankrate's asset quality test, racking up 36 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

How successful a credit union is at making money has an effect on its long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or use them to address problematic loans, potentially making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, FINANCIAL PLUS scored 10 out of a possible 30, below the national average of 10.11.

One sign that the credit union is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.