Safe and Sound

SETTLERS

BRUCE CROSSING, MI
4
Star Rating
Started in 1932, SETTLERS is an NCUA-insured credit union based in BRUCE CROSSING, MI. As of December 31, 2017, the credit union had assets of $25.5 million.

Thanks to the efforts of 8 full-time employees, the credit union holds loans and leases worth $16.3 million. Its 3,482 members currently have $22.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SETTLERS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three major criteria Bankrate used to score U.S. credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of an institution's financial fortitude. It acts as a bulwark against losses and affords protection for members when a credit union is experiencing economic instability. When it comes to safety and soundness, more capital is preferred.

On our test to measure capital adequacy, SETTLERS received a score of 10 out of a possible 30 points, lower than the national average of 15.65.

SETTLERS had a capitalization ratio of 10.00 percent in our test, lower than the average for all credit unions, an indication that it's weaker than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of problem assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having extensive holdings of these types of assets means a credit union could eventually have to use capital to absorb losses, reducing 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 depressed earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, SETTLERS scored 36 out of a possible 40 points, coming in below the national average of 38.09 points.

Troubled assets made up 0.00 percent of SETTLERS's total assets in our test, less than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. Earnings can be retained by the credit union, boosting its capital cushion, or be used to address problematic loans, likely making the credit union more resilient in times of trouble. However, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, SETTLERS scored 16 out of a possible 30, better than the national average of 10.11.

SETTLERS had an earnings ratio of 0.00 percent in our test, above 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.