Safe and Sound

KOREAN CATHOLIC

Olney, MD
4
Star Rating
Founded in 1977, KOREAN CATHOLIC is an NCUA-insured credit union based in Olney, MD. The credit union holds assets of $1.9 million, according to December 31, 2017, regulatory filings.

The credit union has amassed loans and leases worth $792,640. Its 348 members currently have $1.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, KOREAN CATHOLIC exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for 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

Capital works as a buffer against losses and provides protection for members during times of economic trouble for the credit union. It follows then that when it comes to measuring an an institution's financial stability, capital is important. When looking at safety and soundness, the higher the capital, the better.

KOREAN CATHOLIC racked up 22 out of a possible 30 points on our test to measure capital adequacy, better than the national average of 15.65.

KOREAN CATHOLIC's capitalization ratio of 22.00 percent in our test was above the average for all credit unions, a sign that it's stronger than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of problem 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 large numbers of these kinds of assets could eventually have to use capital to cover losses, diminishing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, pushing down earnings and elevating the risk of a failure in the future.

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

Earnings score

A credit union's earnings performance affects its long-term survivability. Earnings may be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. However, credit unions that are losing money are less able to do those things.

KOREAN CATHOLIC scored 2 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.11.

KOREAN CATHOLIC had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, an indication 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.