Safe and Sound

DIRECTIONS

Toledo, OH
3
Star Rating
Founded in 1953, DIRECTIONS is an NCUA-insured credit union headquartered in Toledo, OH. The credit union holds assets of $715.2 million, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 268 full-time employees, the credit union currently holds loans and leases worth $610.3 million. DIRECTIONS's 86,191 members currently have $647.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, DIRECTIONS exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three important criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for members when a credit union is experiencing financial instability. Therefore, an institution's level of capital is a key measurement of its financial resilience. When looking at safety and soundness, more capital is preferred.

DIRECTIONS came in below the national average of 15.65 on our test to measure capital adequacy, achieving a score of 6 out of a possible 30 points.

DIRECTIONS appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 6.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

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

A credit union with lots of these kinds of assets could eventually have to use capital to cover losses, shrinking its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in lower earnings and potentially more risk of a failure in the future.

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

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

Earnings score

How successful a credit union is at earning money affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to address problematic loans, potentially making the credit union better able to withstand economic trouble. Conversely, losses lessen a credit union's ability to do those things.

DIRECTIONS scored 6 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 10.11.

One sign 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.