Safe and Sound

JOHNS HOPKINS

Baltimore, MD
4
Star Rating
Baltimore, MD-based JOHNS HOPKINS is an NCUA-insured credit union started in 1971. The credit union has assets of $436.3 million, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 82 full-time employees, the credit union currently holds loans and leases worth $249.9 million. JOHNS HOPKINS's 41,608 members currently have $383.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, JOHNS HOPKINS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is key. It acts as a bulwark against losses and as protection for members when a credit union is struggling financially. When it comes to safety and soundness, the higher the capital, the better.

JOHNS HOPKINS received a score of 14 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, below the national average of 15.65.

JOHNS HOPKINS's capitalization ratio of 14.00 percent in our test was worse than the average for all credit unions, a sign that it's less well prepared for financial trouble than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as unpaid mortgages.

A credit union with lots of these kinds of assets may eventually be required to use capital to absorb losses, cutting down on its equity buffer. 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.

JOHNS HOPKINS exceeded the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 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

How successful a credit union is at earning money affects its long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, likely making the credit union better able to withstand economic shocks. Conversely, losses lessen a credit union's ability to do those things.

JOHNS HOPKINS exceeded the national average on Bankrate's test of earnings, achieving a score of 14 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, a sign that it's beating its peers in this area.

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.