Safe and Sound

PORTLAND

PORTLAND, MI
4
Star Rating
PORTLAND is a PORTLAND, MI-based, NCUA-insured credit union that opened its doors in 1947. As of December 31, 2017, the credit union held assets of $321.7 million.

Thanks to the efforts of 104 full-time employees, the credit union has amassed loans and leases worth $251.3 million. Its 29,592 members currently have $282.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PORTLAND exhibited a good condition, earning 4 out of 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.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and affords protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an a credit union's financial resilience, capital is essential. When it comes to safety and soundness, the higher the capital, the better.

PORTLAND received a score of 12 out of a possible 30 points on our test to measure capital adequacy, falling short of the national average of 15.65.

PORTLAND appears to be weaker than its peers in this area, with a capitalization ratio of 12.00 percent in our test, less than 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 troubled assets, such as past-due mortgages.

A credit union with a large number of these kinds of assets could eventually have to use capital to absorb losses, diminishing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in lower earnings and potentially more risk of a failure in the future.

PORTLAND scored 36 out of a possible 40 points on Bankrate's asset quality test, failing to reach the national average of 38.09.

A below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings can be retained by the credit union, expanding its capital cushion, or be used to deal with problematic loans, likely making the credit union better prepared to withstand financial trouble. Conversely, losses take away from a credit union's ability to do those things.

On Bankrate's earnings test, PORTLAND scored 18 out of a possible 30, above the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's outperforming 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.