Safe and Sound

MONEY ONE

LARGO, MD
2
Star Rating
MONEY ONE is an NCUA-insured credit union started in 1951 and currently headquartered in LARGO, MD. As of June 30, 2017, the credit union had assets of $124.9 million.

Members have $102.8 million on deposit tended by 33 full-time employees. With that footprint, the credit union holds loans and leases worth $102.8 million. Its 12,544 members currently have $94.1 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, MONEY ONE exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three major criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members during periods of economic instability for the credit union. Therefore, when it comes to measuring an a credit union's financial strength, capital is essential. From a safety and soundness perspective, more capital is preferred.

On our test to measure capital adequacy, MONEY ONE received a score of 10 out of a possible 30 points, less than the national average of 15.26.

MONEY ONE appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 10.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

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

Having a large number of these types of assets suggests a credit union may eventually have to use capital to cover losses, cutting down on its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, diminishing earnings and elevating the risk of a failure in the future.

MONEY ONE came in below the national average of 38.15 on Bankrate's test of asset quality, racking up 32 out of a possible 40 points .

Troubled assets made up 19.00 percent of MONEY ONE's total assets in our test, greater than the national average and something to keep an eye on.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. Earnings may be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, likely making the credit union better prepared to withstand financial shocks. Credit unions that are losing money, however, are less able to do those things.

MONEY ONE underperformed the average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

MONEY ONE had an earnings ratio of -6.00 percent in our test, less than the average for all credit unions, an indication that it's performing behind its peers in this area.

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.