Safe and Sound

HEEKIN CAN EMPL

CINCINNATI, OH
4
Star Rating
HEEKIN CAN EMPL is a CINCINNATI, OH-based, NCUA-insured credit union that opened its doors in 1900. Regulatory filings show the credit union having assets of $736,656, as of December 31, 2017.

The credit union holds loans and leases worth $333,980. Its 171 members currently have $418,482 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HEEKIN CAN EMPL exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three important criteria Bankrate used to grade U.S. 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 provides protection for members during times of financial trouble for the credit union. Therefore, when it comes to measuring an a credit union's financial fortitude, capital is important. When it comes to safety and soundness, the higher the capital, the better.

HEEKIN CAN EMPL scored 30 out of a possible 30 points on our test to measure capital adequacy, exceeding the national average of 15.65.

HEEKIN CAN EMPL appears to be on more solid financial footing than its peers, with a capitalization ratio of 30.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the effect of problem assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.

A credit union with lots of these types of assets may eventually have to use capital to absorb losses, reducing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, decreasing earnings and elevating the risk of a failure in the future.

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

HEEKIN CAN EMPL's ratio of problem assets was 0.00 percent in our test, below the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. A credit union can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, likely making the credit union more resilient in times of trouble. Conversely, losses reduce a credit union's ability to do those things.

HEEKIN CAN EMPL scored 0 out of a possible 30 on Bankrate's test of earnings, below the national average of 10.11.

One indication that the credit union is beating 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.