Safe and Sound

CINCO FAMILY FINANCIAL CENTER

CINCINNATI, OH
3
Star Rating
CINCO FAMILY FINANCIAL CENTER is an NCUA-insured credit union founded in 1936 and currently headquartered in CINCINNATI, OH. As of June 30, 2017, the credit union had assets of $115.0 million.

With 26 full-time employees, the credit union currently holds loans and leases worth $66.0 million. CINCO FAMILY FINANCIAL CENTER's 11,470 members currently have $105.2 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, CINCO FAMILY FINANCIAL CENTER exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three important criteria Bankrate used to grade U.S. credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and provides protection for members when a credit union is experiencing economic trouble. It follows then that a credit union's level of capital is a key measurement of its financial fortitude. From a safety and soundness perspective, the more capital, the better.

On our test to measure capital adequacy, CINCO FAMILY FINANCIAL CENTER received a score of 6 out of a possible 30 points, below the national average of 15.26.

CINCO FAMILY FINANCIAL CENTER's capitalization ratio of 8.00 percent in our test was below the average for all credit unions, an indication that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

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

A credit union with lots of these types of assets may eventually be required to use capital to cover losses, diminishing 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 interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, CINCO FAMILY FINANCIAL CENTER scored 40 out of a possible 40 points, exceeding the national average of 38.15 points.

The credit union's ratio of troubled assets was 1.00 percent in our test, beneath the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, likely making the credit union more resilient in times of trouble. Credit unions that are losing money, however, have less ability to do those things.

CINCO FAMILY FINANCIAL CENTER received below-average marks on Bankrate's earnings test, achieving a score of 6 out of a possible 30.

One indication that CINCO FAMILY FINANCIAL CENTER is running ahead of its peers in this area was its earnings ratio of 3.00 percent in our test, above 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.