Safe and Sound

MICHIGAN TECH EMPLOYEES

HOUGHTON, MI
4
Star Rating
MICHIGAN TECH EMPLOYEES is an NCUA-insured credit union started in 1952 and currently based in HOUGHTON, MI. As of December 31, 2017, the credit union held assets of $77.0 million.

Thanks to the efforts of 22 full-time employees, the credit union currently holds loans and leases worth $41.9 million. MICHIGAN TECH EMPLOYEES's 8,918 members currently have $70.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MICHIGAN TECH EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three key criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial resilience, capital is important. It acts as a buffer against losses and affords protection for members when a credit union is experiencing financial instability. When it comes to safety and soundness, the more capital, the better.

MICHIGAN TECH EMPLOYEES received a score of 6 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, coming in below the national average of 15.65.

MICHIGAN TECH EMPLOYEES had a capitalization ratio of 6.00 percent in our test, worse than the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as unpaid loans.

Having extensive holdings of these types of assets may eventually force a credit union to use capital to absorb losses, cutting down on its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, diminishing earnings and elevating the risk of a failure in the future.

On Bankrate's test of asset quality, MICHIGAN TECH EMPLOYEES scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

Troubled assets made up 0.00 percent of MICHIGAN TECH EMPLOYEES's total assets in our test, lower than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money affects its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. Obviously, credit unions that are losing money are less able to do those things.

MICHIGAN TECH EMPLOYEES scored 20 out of a possible 30 on Bankrate's earnings test, exceeding the national average of 10.11.

One sign that MICHIGAN TECH EMPLOYEES is outperforming 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.