Safe and Sound

WARREN MUNICIPAL

WARREN, MI
2
Star Rating
WARREN MUNICIPAL is an NCUA-insured credit union founded in 1952 and currently headquartered in WARREN, MI. Regulatory filings show the credit union having $16.9 million in assets, as of December 31, 2017.

Thanks to the work of 3 full-time employees, the credit union holds loans and leases worth $4.5 million. WARREN MUNICIPAL's 1,702 members currently have $15.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WARREN MUNICIPAL exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three key criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is valuable. It acts as a bulwark against losses and as protection for members during times of financial trouble for the credit union. From a safety and soundness perspective, more capital is preferred.

WARREN MUNICIPAL received a score of 4 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.

WARREN MUNICIPAL's capitalization ratio of 4.00 percent in our test was below the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as past-due loans.

Having extensive holdings of these types of assets means a credit union could have to use capital to absorb losses, diminishing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, reducing earnings and elevating the chances of a future failure.

WARREN MUNICIPAL scored 32 out of a possible 40 points on Bankrate's asset quality test, less than the national average of 38.09.

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

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, likely making the credit union better prepared to withstand economic trouble. Conversely, losses lessen a credit union's ability to do those things.

On Bankrate's earnings test, WARREN MUNICIPAL scored 0 out of a possible 30, less than the national average of 10.11.

One indication that WARREN MUNICIPAL is doing better than 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.