Safe and Sound

FAITH COMMUNITY UNITED

CLEVELAND, OH
5
Star Rating
FAITH COMMUNITY UNITED is a CLEVELAND, OH-based, NCUA-insured credit union dating back to 0. The credit union has $13.2 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the work of 3 full-time employees, the credit union holds loans and leases worth $9.4 million. Its 4,394 members currently have $8.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FAITH COMMUNITY UNITED exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three key criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and provides protection for members when a credit union is experiencing financial instability. It follows then that an institution's level of capital is a useful measurement of its financial resilience. From a safety and soundness perspective, the higher the capital, the better.

FAITH COMMUNITY UNITED achieved a score of 28 out of a possible 30 points on our test to measure capital adequacy, better than the national average of 15.65.

FAITH COMMUNITY UNITED had a capitalization ratio of 28.00 percent in our test, better than the average for all credit unions, a sign that it could be more resilient in a crisis 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 problem assets, such as past-due mortgages.

A credit union with a large number of these kinds of assets could eventually have to use capital to cover losses, shrinking its cushion of equity. 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 depressed earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, FAITH COMMUNITY UNITED scored 36 out of a possible 40 points, below the national average of 38.09 points.

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

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. Earnings can be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, potentially making the credit union better prepared to withstand financial trouble. Obviously, credit unions that are losing money have less ability to do those things.

FAITH COMMUNITY UNITED scored 8 out of a possible 30 on Bankrate's test of earnings, lower 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, 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.