Safe and Sound

GREATER NILES COMMUNITY

NILES, MI
4
Star Rating
GREATER NILES COMMUNITY is an NCUA-insured credit union founded in 1975 and currently headquartered in NILES, MI. As of December 31, 2017, the credit union held assets of $56.5 million.

Thanks to the efforts of 26 full-time employees, the credit union has amassed loans and leases worth $42.6 million. Its 4,611 members currently have $50.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, GREATER NILES COMMUNITY 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 American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members during periods of financial instability for the credit union. Therefore, an institution's level of capital is an essential measurement of its financial strength. When looking at safety and soundness, the more capital, the better.

On our test to measure capital adequacy, GREATER NILES COMMUNITY received a score of 8 out of a possible 30 points, less than the national average of 15.65.

GREATER NILES COMMUNITY's capitalization ratio of 8.00 percent in our test was less than the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the impact of problem assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having large numbers of these types of assets means a credit union could eventually have to use capital to cover losses, decreasing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, decreasing earnings and elevating the risk of a failure in the future.

GREATER NILES COMMUNITY scored 40 out of a possible 40 points on Bankrate's asset quality test, beating out the national average of 38.09.

A below-average ratio of troubled 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 safety and soundness. Earnings can be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, potentially making the credit union better prepared to withstand financial trouble. Losses, on the other hand, diminish a credit union's ability to do those things.

GREATER NILES COMMUNITY fell short of the national average on Bankrate's earnings test, achieving a score of 8 out of a possible 30.

One sign that GREATER NILES COMMUNITY is outperforming 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.