Safe and Sound

MINERVA AREA

MINERVA, OH
3
Star Rating
MINERVA, OH-based MINERVA AREA is an NCUA-insured credit union founded in 1971. Regulatory filings show the credit union having $8.4 million in assets, as of June 30, 2017.

Members have $3.9 million on deposit tended by 8 full-time employees. With that footprint, the credit union has amassed loans and leases worth $3.9 million. Its 2,180 members currently have $7.5 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, MINERVA AREA 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 faired on the three important criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for members during periods of financial trouble for the credit union. Therefore, an institution's level of capital is a valuable measurement of its financial strength. From a safety and soundness perspective, more capital is better.

On our test to measure capital adequacy, MINERVA AREA received a score of 12 out of a possible 30 points, failing to reach the national average of 15.26.

MINERVA AREA appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 11.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to estimate the effect of troubled assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

A credit union with extensive holdings of these types of assets could eventually be required to use capital to absorb 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 thus aren't earning money, resulting in lower earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, MINERVA AREA scored 40 out of a possible 40 points, beating the national average of 38.15 points.

A lower-than-average ratio of troubled assets of 4.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to address problematic loans, potentially making the credit union more resilient in tough times. Losses, on the other hand, reduce a credit union's ability to do those things.

On Bankrate's earnings test, MINERVA AREA scored 0 out of a possible 30, less than the national average of 10.31.

One sign that MINERVA AREA is running behind its peers in this area was its earnings ratio of -2.00 percent in our test, lower 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.