Safe and Sound

WEST MICHIGAN POSTAL SERVICE

MUSKEGON, MI
3
Star Rating
WEST MICHIGAN POSTAL SERVICE is a MUSKEGON, MI-based, NCUA-insured credit union founded in 1952. Regulatory filings show the credit union having $6.0 million in assets, as of December 31, 2017.

Members have $4.4 million on deposit tended by 2 full-time employees. With that footprint, the credit union has amassed loans and leases worth $4.4 million. WEST MICHIGAN POSTAL SERVICE's 853 members currently have $5.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WEST MICHIGAN POSTAL SERVICE exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three important criteria Bankrate used to score American 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 as protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial strength, capital is valuable. When it comes to safety and soundness, the higher the capital, the better.

WEST MICHIGAN POSTAL SERVICE came in below the national average of 15.65 on our test to measure capital adequacy, receiving a score of 8 out of a possible 30 points.

WEST MICHIGAN POSTAL SERVICE appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 8.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to estimate the impact of problem assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with large numbers of these types of assets could eventually be required to use capital to absorb losses, reducing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a future failure.

WEST MICHIGAN POSTAL SERVICE scored 32 out of a possible 40 points on Bankrate's test of asset quality, failing to reach the national average of 38.09.

WEST MICHIGAN POSTAL SERVICE's ratio of problem assets was 0.00 percent in our test, lower than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. However, credit unions that are losing money are less able to do those things.

WEST MICHIGAN POSTAL SERVICE underperformed the average on Bankrate's test of earnings, achieving a score of 8 out of a possible 30.

One sign that WEST MICHIGAN POSTAL SERVICE is running ahead of 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.