Safe and Sound

EAST OHIO GAS CLEV OPER EMP

CLEVELAND, OH
3
Star Rating
EAST OHIO GAS CLEV OPER EMP is an NCUA-insured credit union founded in 1935 and currently headquartered in CLEVELAND, OH. The credit union has $1.5 million in assets, according to December 31, 2017, regulatory filings.

The credit union holds loans and leases worth $876,468. Its 383 members currently have $1.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, EAST OHIO GAS CLEV OPER EMP exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three key criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and provides protection for members during periods of financial instability for the credit union. Therefore, a credit union's level of capital is a key measurement of its financial resilience. From a safety and soundness perspective, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, EAST OHIO GAS CLEV OPER EMP racked up 30 out of a possible 30 points, better than the national average of 15.65.

EAST OHIO GAS CLEV OPER EMP's capitalization ratio of 30.00 percent in our test was better than the average for all credit unions, suggesting that it's stronger than its peers.

Asset Quality Score

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

A credit union with large numbers of these types of assets could eventually have to use capital to absorb losses, reducing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, pushing down earnings and elevating the chances of a future failure.

EAST OHIO GAS CLEV OPER EMP scored 28 out of a possible 40 points on Bankrate's asset quality test, failing to reach the national average of 38.09.

Troubled assets made up 0.00 percent of EAST OHIO GAS CLEV OPER EMP's total assets in our test, lower than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better able to withstand economic trouble. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's test of earnings, EAST OHIO GAS CLEV OPER EMP scored 0 out of a possible 30, falling short of the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting 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.