Safe and Sound

CHILDREN'S MEDICAL CENTER

CINCINNATI, OH
5
Star Rating
CHILDREN'S MEDICAL CENTER is an NCUA-insured credit union started in 1970 and currently based in CINCINNATI, OH. The credit union holds assets of $37.3 million, according to December 31, 2017, regulatory filings.

Members have $25.3 million on deposit tended by 5 full-time employees. With that footprint, the credit union currently holds loans and leases worth $25.3 million. Its 6,142 members currently have $31.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CHILDREN'S MEDICAL CENTER exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three major criteria Bankrate used to grade U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and affords protection for members during periods of economic trouble for the credit union. Therefore, an institution's level of capital is an important measurement of its financial fortitude. When it comes to safety and soundness, the more capital, the better.

CHILDREN'S MEDICAL CENTER beat out the national average of 15.65 points on our test to measure capital adequacy, racking up 20 out of a possible 30 points.

CHILDREN'S MEDICAL CENTER's capitalization ratio of 20.00 percent in our test was above the average for all credit unions, a sign that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

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

A credit union with lots of these kinds of assets could eventually be required to use capital to cover losses, shrinking its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, decreasing earnings and increasing the risk of a future failure.

CHILDREN'S MEDICAL CENTER did better than the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

CHILDREN'S MEDICAL CENTER's ratio of troubled assets was 0.00 percent in our test, less than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings may be retained by the credit union, boosting its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, diminish a credit union's ability to do those things.

CHILDREN'S MEDICAL CENTER scored 12 out of a possible 30 on Bankrate's earnings test, exceeding the national average of 10.11.

One indication that the credit union is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.