Safe and Sound

MARSHALL COMMUNITY

MARSHALL, MI
5
Star Rating
Founded in 1951, MARSHALL COMMUNITY is an NCUA-insured credit union based in MARSHALL, MI. The credit union has assets of $188.0 million, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 45 full-time employees, the credit union has amassed loans and leases worth $148.7 million. MARSHALL COMMUNITY's 12,095 members currently have $148.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MARSHALL COMMUNITY exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union faired on the three key 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 works as a bulwark against losses and as protection for members during periods of economic trouble for the credit union. Therefore, when it comes to measuring an a credit union's financial strength, capital is important. From a safety and soundness perspective, more capital is better.

On our test to measure capital adequacy, MARSHALL COMMUNITY achieved a score of 26 out of a possible 30 points, exceeding the national average of 15.65.

MARSHALL COMMUNITY appears to be on more solid financial footing than its peers, with a capitalization ratio of 26.00 percent in our test, above the average for all credit unions.

Asset Quality Score

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

Having a large number of these kinds of assets suggests a credit union may have to use capital to cover losses, reducing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a failure in the future.

MARSHALL COMMUNITY came in below the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

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

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, boosting its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. Credit unions that are losing money, however, are less able to do those things.

MARSHALL COMMUNITY scored 16 out of a possible 30 on Bankrate's test of earnings, beating the national average of 10.11.

One indication that the credit union is beating its peers in this area was its earnings ratio of 0.00 percent in our test, better than 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.