Safe and Sound

ASHLAND COMMUNITY

Ashland, OH
3
Star Rating
ASHLAND COMMUNITY is an Ashland, OH-based, NCUA-insured credit union started in 1951. Regulatory filings show the credit union having assets of $15.0 million, as of December 31, 2017.

With 4 full-time employees, the credit union currently holds loans and leases worth $11.8 million. Its 3,180 members currently have $13.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ASHLAND COMMUNITY 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 did on the three major criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of an institution's financial resilience. It acts as a cushion against losses and affords protection for members when a credit union is struggling financially. When it comes to safety and soundness, the more capital, the better.

ASHLAND COMMUNITY received a score of 6 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, below the national average of 15.65.

ASHLAND COMMUNITY's capitalization ratio of 6.00 percent in our test was less than the average for all credit unions, a sign that it's weaker than its peers.

Asset Quality Score

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

A credit union with a large number of these types of assets could eventually be forced to use capital to absorb losses, decreasing its buffer of equity. 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, resulting in depressed earnings and potentially more risk of a future failure.

ASHLAND COMMUNITY beat out the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. A credit union can retain its earnings, increasing its capital cushion, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand financial trouble. Obviously, credit unions that are losing money have less ability to do those things.

ASHLAND COMMUNITY scored 8 out of a possible 30 on Bankrate's test of earnings, coming in below the national average of 10.11.

One sign that ASHLAND COMMUNITY is outperforming its peers in this area was its earnings ratio of 0.00 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.