Safe and Sound

E.S.C.U.

HOLLAND, OH
3
Star Rating
E.S.C.U. is an NCUA-insured credit union started in 1973 and currently headquartered in HOLLAND, OH. As of June 30, 2017, the credit union had assets of $4.8 million.

Thanks to the efforts of 2 full-time employees, the credit union holds loans and leases worth $2.3 million. E.S.C.U.'s 791 members currently have $4.3 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, E.S.C.U. 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.

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THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of an institution's financial strength. It works as a buffer against losses and provides protection for members when a credit union is struggling financially. When looking at safety and soundness, the more capital, the better.

E.S.C.U. received a score of 12 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, less than the national average of 15.26.

E.S.C.U. had a capitalization ratio of 10.00 percent in our test, lower than the average for all credit unions, an indication 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 reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as past-due mortgages.

Having large numbers of these types of assets may eventually require a credit union to use capital to cover losses, diminishing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, diminishing earnings and elevating the risk of a future failure.

E.S.C.U. fell below the national average of 38.15 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

A greater-than-average ratio of problem assets of 10.00 percent in our test was a potential cause for concern for E.S.C.U..

Earnings score

How successful a credit union is at earning money affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, likely making the credit union more resilient in tough times. Obviously, credit unions that are losing money are less able to do those things.

E.S.C.U. fell short of the national average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

One sign that E.S.C.U. is lagging behind its peers in this area was its earnings ratio of -149.00 percent in our test, below 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.