Safe and Sound

CATHOLICS UNITED

Hutchinson, KS
4
Star Rating
Hutchinson, KS-based CATHOLICS UNITED is an NCUA-insured credit union started in 2005. Regulatory filings show the credit union having $210,987 in assets, as of December 31, 2017.

The credit union holds loans and leases worth $61,797. CATHOLICS UNITED's 146 members currently have $101,440 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CATHOLICS UNITED 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.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and provides protection for members when a credit union is experiencing financial trouble. Therefore, when it comes to measuring an an institution's financial fortitude, capital is key. When it comes to safety and soundness, more capital is preferred.

CATHOLICS UNITED racked up 20 out of a possible 30 points on our test to measure capital adequacy, beating the national average of 15.65.

CATHOLICS UNITED had a capitalization ratio of 20.00 percent in our test, higher than the average for all credit unions, suggesting that it's on more solid financial footing than its peers.

Asset Quality Score

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

Having lots of these types of assets may eventually force a credit union to use capital to absorb 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 elevating the chances of a future failure.

CATHOLICS UNITED scored below the national average of 38.09 on Bankrate's asset quality test, racking up 32 out of a possible 40 points .

Troubled assets made up 0.00 percent of the credit union's total assets in our test, below the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better able to withstand financial shocks. Conversely, losses reduce a credit union's ability to do those things.

CATHOLICS UNITED underperformed the average on Bankrate's earnings test, achieving a score of 10 out of a possible 30.

CATHOLICS UNITED had an earnings ratio of 0.00 percent in our test, above 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.