Safe and Sound

ACME

EASTLAKE, OH
5
Star Rating
EASTLAKE, OH-based ACME is an NCUA-insured credit union founded in 1939. As of December 31, 2017, the credit union held assets of $14.1 million.

Members have $5.4 million on deposit tended by 4 full-time employees. With that footprint, the credit union currently holds loans and leases worth $5.4 million. ACME's 3,276 members currently have $11.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ACME exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of a credit union's financial strength. It works as a cushion against losses and provides protection for members when a credit union is experiencing financial instability. When looking at safety and soundness, more capital is better.

ACME racked up 28 out of a possible 30 points on our test to measure capital adequacy, exceeding the national average of 15.65.

ACME appears to be on more solid financial footing than its peers, with a capitalization ratio of 28.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

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

Having a large number of these kinds of assets suggests a credit union could have to use capital to absorb losses, reducing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a failure in the future.

ACME scored 40 out of a possible 40 points on Bankrate's asset quality test, above the national average of 38.09.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, below the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. Earnings may be retained by the credit union, boosting its capital cushion, or be used to address problematic loans, likely making the credit union more resilient in tough times. Conversely, losses diminish a credit union's ability to do those things.

ACME fell behind the national average on Bankrate's test of earnings, achieving a score of 2 out of a possible 30.

One indication that ACME is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.