Safe and Sound

GIRARD

Girard, OH
4
Star Rating
Girard, OH-based GIRARD is an NCUA-insured credit union founded in 1960. As of December 31, 2017, the credit union had assets of $1.7 million.

The credit union currently holds loans and leases worth $1.0 million. Its 315 members currently have $1.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, GIRARD exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three major criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and affords protection for members when a credit union is experiencing economic trouble. It follows then that when it comes to measuring an a credit union's financial resilience, capital is essential. When looking at safety and soundness, the more capital, the better.

GIRARD racked up 30 out of a possible 30 points on our test to measure capital adequacy, exceeding the national average of 15.65.

GIRARD had a capitalization ratio of 30.00 percent in our test, above the average for all credit unions, an indication that it's stronger than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as past-due mortgages.

Having extensive holdings of these types of assets suggests a credit union could have to use capital to absorb 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 interest for the credit union, resulting in lower earnings and potentially more risk of a future failure.

GIRARD scored 28 out of a possible 40 points on Bankrate's test of asset quality, failing to reach the national average of 38.09.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, less than 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 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, likely making the credit union better prepared to withstand economic shocks. Conversely, losses diminish a credit union's ability to do those things.

GIRARD scored 2 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.11.

One indication that GIRARD is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.