Safe and Sound

HOLY REDEEMER COMMUNITY OF SE WIS.

MILWAUKEE, WI
4
Star Rating
HOLY REDEEMER COMMUNITY OF SE WIS. is a MILWAUKEE, WI-based, NCUA-insured credit union founded in 1993. Regulatory filings show the credit union having $963,734 in assets, as of December 31, 2017.

The credit union currently holds loans and leases worth $148,555. Its 258 members currently have $796,533 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HOLY REDEEMER COMMUNITY OF SE WIS. exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three key criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of a credit union's financial resilience. It acts as a cushion against losses and as protection for members when a credit union is experiencing economic instability. When looking at safety and soundness, the more capital, the better.

HOLY REDEEMER COMMUNITY OF SE WIS. racked up 26 out of a possible 30 points on our test to measure capital adequacy, better than the national average of 15.65.

HOLY REDEEMER COMMUNITY OF SE WIS. appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 26.00 percent in our test, above the average for all credit unions.

Asset Quality Score

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

A credit union with lots of these types of assets could eventually be required to use capital to absorb losses, reducing 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, resulting in diminished earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, HOLY REDEEMER COMMUNITY OF SE WIS. scored 36 out of a possible 40 points, lower than the national average of 38.09 points.

A below-average ratio of troubled 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 can be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Losses, on the other hand, diminish a credit union's ability to do those things.

HOLY REDEEMER COMMUNITY OF SE WIS. scored 2 out of a possible 30 on Bankrate's test of earnings, coming in below the national average of 10.11.

One sign that the credit union is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.