Safe and Sound

GRAND TRUNK BATTLE CREEK EMP

BATTLE CREEK, MI
5
Star Rating
Started in 1945, GRAND TRUNK BATTLE CREEK EMP is an NCUA-insured credit union headquartered in BATTLE CREEK, MI. As of December 31, 2017, the credit union held assets of $32.7 million.

Thanks to the efforts of 11 full-time employees, the credit union holds loans and leases worth $15.0 million. Its 2,926 members currently have $27.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, GRAND TRUNK BATTLE CREEK EMP 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 major criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and affords protection for members when a credit union is struggling financially. It follows then that an institution's level of capital is a crucial measurement of its financial fortitude. From a safety and soundness perspective, the higher the capital, the better.

On our test to measure capital adequacy, GRAND TRUNK BATTLE CREEK EMP achieved a score of 22 out of a possible 30 points, above the national average of 15.65.

GRAND TRUNK BATTLE CREEK EMP had a capitalization ratio of 22.00 percent in our test, above the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the effect of problem assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

A credit union with a large number of these kinds of assets may eventually be required to use capital to absorb losses, shrinking 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 money, resulting in reduced earnings and potentially more risk of a failure in the future.

GRAND TRUNK BATTLE CREEK EMP scored above the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

GRAND TRUNK BATTLE CREEK EMP's ratio of troubled assets was 0.00 percent in our test, lower than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. 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 able to withstand financial trouble. Conversely, losses diminish a credit union's ability to do those things.

GRAND TRUNK BATTLE CREEK EMP scored 8 out of a possible 30 on Bankrate's earnings test, falling short of the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, an indication that it's doing better than 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.