Safe and Sound

WASHTENAW

YPSILANTI, MI
3
Star Rating
WASHTENAW is an NCUA-insured credit union founded in 1949 and currently headquartered in YPSILANTI, MI. The credit union has assets of $41.1 million, according to December 31, 2017, regulatory filings.

With 16 full-time employees, the credit union currently holds loans and leases worth $25.1 million. WASHTENAW's 6,541 members currently have $37.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WASHTENAW exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three important criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and provides protection for members during periods of economic instability for the credit union. Therefore, when it comes to measuring an a credit union's financial fortitude, capital is essential. When looking at safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, WASHTENAW received a score of 6 out of a possible 30 points, below the national average of 15.65.

WASHTENAW's capitalization ratio of 6.00 percent in our test was worse than the average for all credit unions, suggesting that it's on less solid financial footing 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 troubled assets, such as unpaid mortgages.

Having extensive holdings of these types of assets means a credit union could have to use capital to cover losses, cutting down on its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, diminishing earnings and increasing the risk of a failure in the future.

On Bankrate's test of asset quality, WASHTENAW scored 40 out of a possible 40 points, above the national average of 38.09 points.

WASHTENAW's ratio of troubled assets was 0.00 percent 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 has an effect on its long-term survivability. Earnings may be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, likely making the credit union better prepared to withstand economic shocks. Losses, on the other hand, reduce a credit union's ability to do those things.

WASHTENAW received below-average marks on Bankrate's test of earnings, achieving a score of 4 out of a possible 30.

One indication that the credit union is beating 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.