Safe and Sound

MICHIGAN SCHOOLS AND GOVERNMENT

Clinton Townshi, MI
5
Star Rating
Founded in 1954, MICHIGAN SCHOOLS AND GOVERNMENT is an NCUA-insured credit union headquartered in CLINTON TOWNSHI, MI. As of December 31, 2017, the credit union held assets of $1.85 billion.

With 302 full-time employees, the credit union has amassed loans and leases worth $1.47 billion. Its 119,258 members currently have $1.59 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MICHIGAN SCHOOLS AND GOVERNMENT exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for members when a credit union is experiencing financial trouble. Therefore, when it comes to measuring an an institution's financial stability, capital is key. When looking at safety and soundness, the more capital, the better.

On our test to measure capital adequacy, MICHIGAN SCHOOLS AND GOVERNMENT achieved a score of 16 out of a possible 30 points, exceeding the national average of 15.65.

MICHIGAN SCHOOLS AND GOVERNMENT had a capitalization ratio of 16.00 percent in our test, identical the average for all credit unions, a sign that it's right in line with its peers.

Asset Quality Score

This test is intended to estimate how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as unpaid mortgages.

Having large numbers of these kinds of assets suggests a credit union could eventually have to use capital to cover 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, resulting in diminished earnings and potentially more risk of a failure in the future.

MICHIGAN SCHOOLS AND GOVERNMENT scored 40 out of a possible 40 points on Bankrate's asset quality test, above the national average of 38.09.

A below-average ratio of problem 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 safety and soundness. Earnings can be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, reduce a credit union's ability to do those things.

On Bankrate's earnings test, MICHIGAN SCHOOLS AND GOVERNMENT scored 20 out of a possible 30, beating the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, better than 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.