Safe and Sound

CINCINNATI EMPLOYEES

HARRISON, OH
4
Star Rating
CINCINNATI EMPLOYEES is an NCUA-insured credit union started in 1979 and currently headquartered in HARRISON, OH. The credit union has assets of $27.6 million, according to December 31, 2017, regulatory filings.

With 3 full-time employees, the credit union has amassed loans and leases worth $14.0 million. Its 1,609 members currently have $24.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CINCINNATI EMPLOYEES 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 major criteria Bankrate used to grade American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members during periods of economic instability for the credit union. Therefore, when it comes to measuring an a credit union's financial strength, capital is essential. From a safety and soundness perspective, more capital is preferred.

CINCINNATI EMPLOYEES fell short of the national average of 15.65 on our test to measure capital adequacy, receiving a score of 14 out of a possible 30 points.

CINCINNATI EMPLOYEES had a capitalization ratio of 14.00 percent in our test, worse than the average for all credit unions, a sign that it's on less solid financial footing than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as past-due mortgages.

Having a large number of these types of assets suggests a credit union could eventually have to use capital to cover losses, shrinking its equity buffer. 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, reducing earnings and increasing the chances of a future failure.

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

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. Earnings can be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, likely making the credit union better able to withstand economic shocks. Credit unions that are losing money, however, have less ability to do those things.

CINCINNATI EMPLOYEES scored 6 out of a possible 30 on Bankrate's earnings test, less than the national average of 10.11.

One sign that the credit union is beating 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.