Safe and Sound

BARDES EMPLOYEES

CINCINNATI, OH
2
Star Rating
BARDES EMPLOYEES is an NCUA-insured credit union founded in 1958 and currently based in CINCINNATI, OH. The credit union holds $994,707 in assets, according to December 31, 2017, regulatory filings.

The credit union currently holds loans and leases worth $555,895. BARDES EMPLOYEES's 285 members currently have $906,333 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BARDES EMPLOYEES exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three major criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and as protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an a credit union's financial resilience, capital is useful. When looking at safety and soundness, the higher the capital, the better.

BARDES EMPLOYEES fell below the national average of 15.65 on our test to measure capital adequacy, racking up 8 out of a possible 30 points.

BARDES EMPLOYEES appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 8.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

This test's purpose is to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as past-due loans.

A credit union with extensive holdings of these types of assets may eventually be forced to use capital to cover losses, decreasing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, pushing down earnings and elevating the risk of a failure in the future.

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

Earnings score

A credit union's profitability affects its long-term survivability. Earnings may be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, potentially making the credit union better able to withstand economic trouble. Conversely, losses reduce a credit union's ability to do those things.

On Bankrate's test of earnings, BARDES EMPLOYEES scored 0 out of a possible 30, less than the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's beating 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.