Safe and Sound

HEALTH CARE FAMILY

Saint Louis, MO
5
Star Rating
Started in 1969, HEALTH CARE FAMILY is an NCUA-insured credit union headquartered in Saint Louis, MO. Regulatory filings show the credit union having $59.9 million in assets, as of December 31, 2017.

Thanks to the work of 19 full-time employees, the credit union currently holds loans and leases worth $46.8 million. HEALTH CARE FAMILY's 5,980 members currently have $47.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HEALTH CARE FAMILY exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union did 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

When it comes to measuring an institution's financial fortitude, capital is useful. It acts as a bulwark against losses and as protection for members during times of economic trouble for the credit union. When looking at safety and soundness, the more capital, the better.

On our test to measure capital adequacy, HEALTH CARE FAMILY scored 18 out of a possible 30 points, above the national average of 15.65.

HEALTH CARE FAMILY had a capitalization ratio of 18.00 percent in our test, above the average for all credit unions, suggesting that it could be more resilient in a crisis than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with a large number of these types of assets may eventually have to use capital to cover losses, diminishing 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, decreasing earnings and increasing the chances of a future failure.

HEALTH CARE FAMILY scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating the national average of 38.09.

Troubled assets made up 0.00 percent of HEALTH CARE FAMILY's total assets in our test, lower than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance affects its long-term survivability. Earnings can be retained by the credit union, boosting its capital cushion, or be used to address problematic loans, likely making the credit union more resilient in tough times. Conversely, losses reduce a credit union's ability to do those things.

On Bankrate's earnings test, HEALTH CARE FAMILY scored 14 out of a possible 30, beating out the national average of 10.11.

One sign that HEALTH CARE FAMILY 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.