Safe and Sound

UNIVERSITY OF TOLEDO

TOLEDO, OH
3
Star Rating
Founded in 1964, UNIVERSITY OF TOLEDO is an NCUA-insured credit union headquartered in TOLEDO, OH. As of June 30, 2017, the credit union had assets of $73.8 million.

Thanks to the work of 14 full-time employees, the credit union has amassed loans and leases worth $31.5 million. UNIVERSITY OF TOLEDO's 6,544 members currently have $65.6 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, UNIVERSITY OF TOLEDO exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three major criteria Bankrate used to score U.S. credit unions.

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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 struggling financially. Therefore, an institution's level of capital is a crucial measurement of its financial strength. When it comes to safety and soundness, more capital is better.

UNIVERSITY OF TOLEDO scored below the national average of 15.26 on our test to measure capital adequacy, scoring 12 out of a possible 30 points.

UNIVERSITY OF TOLEDO had a capitalization ratio of 11.00 percent in our test, worse than the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of problem assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

Having lots of these kinds of assets could eventually require a credit union to use capital to cover losses, reducing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, diminishing earnings and increasing the chances of a failure in the future.

UNIVERSITY OF TOLEDO scored above the national average of 38.15 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

Troubled assets made up 3.00 percent of UNIVERSITY OF TOLEDO's total assets in our test, beneath the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance has an effect on its safety and soundness. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, likely making the credit union better able to withstand economic shocks. Obviously, credit unions that are losing money have less ability to do those things.

UNIVERSITY OF TOLEDO scored 2 out of a possible 30 on Bankrate's test of earnings, failing to reach the national average of 10.31.

UNIVERSITY OF TOLEDO had an earnings ratio of 1.00 percent in our test, equal to the average for all credit unions, suggesting that it's right in line with 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.