Safe and Sound

IRON MOUNTAIN KINGSFORD COMMUNITY

Kingsford, MI
4
Star Rating
Started in 1948, IRON MOUNTAIN KINGSFORD COMMUNITY is an NCUA-insured credit union headquartered in KINGSFORD, MI. The credit union has $96.4 million in assets, according to December 31, 2017, regulatory filings.

Members have $36.6 million on deposit tended by 31 full-time employees. With that footprint, the credit union holds loans and leases worth $36.6 million. IRON MOUNTAIN KINGSFORD COMMUNITY's 11,814 members currently have $82.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, IRON MOUNTAIN KINGSFORD COMMUNITY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three key criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of an institution's financial resilience. It works as a bulwark against losses and affords protection for members when a credit union is experiencing financial instability. From a safety and soundness perspective, more capital is better.

IRON MOUNTAIN KINGSFORD COMMUNITY did better than the national average of 15.65 points on our test to measure capital adequacy, scoring 18 out of a possible 30 points.

IRON MOUNTAIN KINGSFORD COMMUNITY had a capitalization ratio of 18.00 percent in our test, better than 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 estimate the effect of problem assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

Having large numbers of these kinds of assets suggests a credit union could have to use capital to absorb losses, shrinking its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, pushing down earnings and increasing the risk of a future failure.

On Bankrate's asset quality test, IRON MOUNTAIN KINGSFORD COMMUNITY scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

IRON MOUNTAIN KINGSFORD COMMUNITY's ratio of troubled assets was 0.00 percent in our test, less than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, potentially making the credit union better able to withstand economic shocks. Conversely, losses lessen a credit union's ability to do those things.

On Bankrate's test of earnings, IRON MOUNTAIN KINGSFORD COMMUNITY scored 4 out of a possible 30, failing to reach the national average of 10.11.

IRON MOUNTAIN KINGSFORD COMMUNITY had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's running ahead of 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.