Safe and Sound

EATON FAMILY

Euclid, OH
3
Star Rating
Founded in 1937, EATON FAMILY is an NCUA-insured credit union based in Euclid, OH. Regulatory filings show the credit union having assets of $62.9 million, as of December 31, 2017.

Members have $38.2 million on deposit tended by 23 full-time employees. With that footprint, the credit union has amassed loans and leases worth $38.2 million. EATON FAMILY's 14,020 members currently have $56.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, EATON FAMILY exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three major criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and provides protection for members when a credit union is experiencing financial instability. It follows then that a credit union's level of capital is an important measurement of its financial fortitude. When it comes to safety and soundness, more capital is better.

On our test to measure the adequacy of a credit union's capital, EATON FAMILY received a score of 10 out of a possible 30 points, falling short of the national average of 15.65.

EATON FAMILY appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 10.00 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 past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.

A credit union with extensive holdings of these types of assets may eventually be required to use capital to cover losses, cutting down on its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, EATON FAMILY scored 36 out of a possible 40 points, less than the national average of 38.09 points.

EATON FAMILY's ratio of troubled assets was 0.00 percent in our test, lower than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects 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 financial shocks. Losses, on the other hand, take away from a credit union's ability to do those things.

EATON FAMILY received below-average marks on Bankrate's earnings test, achieving a score of 4 out of a possible 30.

One sign that EATON FAMILY is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.