Safe and Sound

MUSKEGON PATTERNMAKERS

MUSKEGON HTS, MI
4
Star Rating
Founded in 1956, MUSKEGON PATTERNMAKERS is an NCUA-insured credit union headquartered in MUSKEGON HTS, MI. As of December 31, 2017, the credit union had assets of $3.2 million.

The credit union currently holds loans and leases worth $1.5 million. MUSKEGON PATTERNMAKERS's 439 members currently have $2.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MUSKEGON PATTERNMAKERS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three major criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

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

MUSKEGON PATTERNMAKERS achieved a score of 30 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, beating the national average of 15.65.

MUSKEGON PATTERNMAKERS appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 30.00 percent in our test, above the average for all credit unions.

Asset Quality Score

This test's purpose is to estimate 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 lots of these kinds of assets could eventually require a credit union to use capital to cover losses, diminishing 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 depressed earnings and potentially more risk of a future failure.

MUSKEGON PATTERNMAKERS scored above the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

MUSKEGON PATTERNMAKERS's ratio of troubled assets was 0.00 percent in our test, beneath the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or use them to address problematic loans, potentially making the credit union better able to withstand economic shocks. Conversely, losses take away from a credit union's ability to do those things.

MUSKEGON PATTERNMAKERS underperformed the average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

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