Safe and Sound

TRUNORTH

ISHPEMING, MI
4
Star Rating
ISHPEMING, MI-based TRUNORTH is an NCUA-insured credit union started in 1949. The credit union holds $143.9 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 40 full-time employees, the credit union currently holds loans and leases worth $87.7 million. Its 16,344 members currently have $129.4 million in shares with the credit union.

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

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members when a credit union is experiencing financial instability. Therefore, a credit union's level of capital is a useful measurement of its financial fortitude. When looking at safety and soundness, the more capital, the better.

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

TRUNORTH's capitalization ratio of 10.00 percent in our test was below the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

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

A credit union with large numbers of these types of assets could eventually have to use capital to absorb losses, cutting down on its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, pushing down earnings and elevating the risk of a failure in the future.

TRUNORTH scored 40 out of a possible 40 points on Bankrate's test of asset quality, better than the national average of 38.09.

A lower-than-average ratio of troubled 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 making money affects its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the credit union better able to withstand economic trouble. However, credit unions that are losing money are less able to do those things.

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

TRUNORTH had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's doing better than 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.