Safe and Sound

GOLDEN CIRCLE

MASSILLON, OH
4
Star Rating
Founded in 1940, GOLDEN CIRCLE is an NCUA-insured credit union based in MASSILLON, OH. As of December 31, 2017, the credit union had assets of $87.6 million.

Members have $54.7 million on deposit tended by 17 full-time employees. With that footprint, the credit union currently holds loans and leases worth $54.7 million. Its 8,938 members currently have $63.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, GOLDEN CIRCLE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three important criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial fortitude, capital is valuable. It works as a cushion against losses and affords protection for members during times of financial instability for the credit union. From a safety and soundness perspective, the more capital, the better.

On our test to measure capital adequacy, GOLDEN CIRCLE achieved a score of 24 out of a possible 30 points, better than the national average of 15.65.

GOLDEN CIRCLE had a capitalization ratio of 24.00 percent in our test, above the average for all credit unions, suggesting that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

This test's purpose is to try to understand 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 unpaid loans.

Having a large number of these types of assets means a credit union could have to use capital to absorb losses, reducing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in reduced earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, GOLDEN CIRCLE scored 40 out of a possible 40 points, above the national average of 38.09 points.

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance has an effect on its safety and soundness. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, likely making the credit union more resilient in times of trouble. However, credit unions that are losing money are less able to do those things.

GOLDEN CIRCLE scored 2 out of a possible 30 on Bankrate's test of earnings, less than the national average of 10.11.

One indication that the credit union is outperforming 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.