Safe and Sound

MEMBERS CHOICE

GREENVILLE, OH
5
Star Rating
MEMBERS CHOICE is a GREENVILLE, OH-based, NCUA-insured credit union started in 0. Regulatory filings show the credit union having $20.9 million in assets, as of June 30, 2017.

Thanks to the efforts of 4 full-time employees, the credit union holds loans and leases worth $10.5 million. Its 3,328 members currently have $16.9 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, MEMBERS CHOICE exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and as protection for members when a credit union is experiencing financial instability. It follows then that when it comes to measuring an an institution's financial stability, capital is essential. When it comes to safety and soundness, the more capital, the better.

MEMBERS CHOICE achieved a score of 28 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, beating out the national average of 15.26.

MEMBERS CHOICE's capitalization ratio of 19.00 percent in our test was better than the average for all credit unions, suggesting that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

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

A credit union with lots of these kinds of assets could eventually have to use capital to cover losses, cutting down on 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, decreasing earnings and increasing the risk of a failure in the future.

On Bankrate's asset quality test, MEMBERS CHOICE scored 40 out of a possible 40 points, exceeding the national average of 38.15 points.

A below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or use them to address problematic loans, likely making the credit union better prepared to withstand financial trouble. Losses, on the other hand, diminish a credit union's ability to do those things.

MEMBERS CHOICE fell short of the national average on Bankrate's test of earnings, achieving a score of 10 out of a possible 30.

One sign that the credit union is doing better than its peers in this area was its earnings ratio of 4.00 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.