Safe and Sound

HARBORLIGHT

WHITEHALL, MI
3
Star Rating
HARBORLIGHT is an NCUA-insured credit union started in 1954 and currently based in WHITEHALL, MI. Regulatory filings show the credit union having $105.9 million in assets, as of December 31, 2017.

Members have $54.7 million on deposit tended by 28 full-time employees. With that footprint, the credit union holds loans and leases worth $54.7 million. HARBORLIGHT's 10,266 members currently have $95.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HARBORLIGHT exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three major criteria Bankrate used to score American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and provides protection for members during times of financial instability for the credit union. Therefore, when it comes to measuring an a credit union's financial stability, capital is essential. From a safety and soundness perspective, the higher the capital, the better.

HARBORLIGHT finished below the national average of 15.65 on our test to measure capital adequacy, receiving a score of 10 out of a possible 30 points.

HARBORLIGHT had a capitalization ratio of 10.00 percent in our test, below the average for all credit unions, an indication that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the impact of troubled assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with large numbers of these types of assets could eventually be required to use capital to absorb losses, reducing its equity buffer. 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.

On Bankrate's asset quality test, HARBORLIGHT scored 40 out of a possible 40 points, above the national average of 38.09 points.

Troubled assets made up 0.00 percent of HARBORLIGHT's total assets in our test, below 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 has an effect on its long-term survivability. Earnings may be retained by the credit union, increasing its capital cushion, or be used to address problematic loans, likely making the credit union more resilient in tough times. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's test of earnings, HARBORLIGHT scored 0 out of a possible 30, failing to reach 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, suggesting that it's outperforming 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.