Safe and Sound

CARMEL BROTHERHOOD

CINCINNATI, OH
4
Star Rating
CINCINNATI, OH-based CARMEL BROTHERHOOD is an NCUA-insured credit union started in 1949. Regulatory filings show the credit union having $125,629 in assets, as of December 31, 2017.

The credit union currently holds loans and leases worth $37,494. CARMEL BROTHERHOOD's 99 members currently have $106,165 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CARMEL BROTHERHOOD exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three key 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 buffer against losses and as protection for members when a credit union is struggling financially. It follows then that a credit union's level of capital is an important measurement of its financial resilience. From a safety and soundness perspective, more capital is preferred.

CARMEL BROTHERHOOD exceeded the national average of 15.65 points on our test to measure capital adequacy, racking up 22 out of a possible 30 points.

CARMEL BROTHERHOOD appears to be more resilient than its peers, with a capitalization ratio of 22.00 percent in our test, above the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the impact of problem assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with a large number of these kinds of assets could eventually be required to use capital to cover losses, cutting down on its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, reducing earnings and increasing the chances of a failure in the future.

CARMEL BROTHERHOOD finished below the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

CARMEL BROTHERHOOD's ratio of problem assets was 0.00 percent in our test, beneath the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or use them to address problematic loans, potentially making the credit union better able to withstand financial trouble. However, credit unions that are losing money have less ability to do those things.

On Bankrate's earnings test, CARMEL BROTHERHOOD scored 8 out of a possible 30, less than the national average of 10.11.

CARMEL BROTHERHOOD had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, a sign that it's running ahead of 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.