Safe and Sound

M G EMPLOYEES

Marysville, OH
4
Star Rating
MARYSVILLE, OH-based M G EMPLOYEES is an NCUA-insured credit union started in 1974. As of December 31, 2017, the credit union held assets of $2.8 million.

The credit union currently holds loans and leases worth $1.6 million. M G EMPLOYEES's 249 members currently have $2.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, M G EMPLOYEES 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 U.S. 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 essential. It works as a cushion against losses and affords protection for members when a credit union is experiencing financial instability. When looking at safety and soundness, more capital is better.

M G EMPLOYEES racked up 30 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, beating the national average of 15.65.

M G EMPLOYEES's capitalization ratio of 30.00 percent in our test was higher than the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as past-due mortgages.

Having a large number of these kinds of assets may eventually require a credit union to use capital to cover losses, reducing 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 depressed earnings and potentially more risk of a future failure.

M G EMPLOYEES came in below the national average of 38.09 on Bankrate's asset quality test, racking up 36 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 superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, potentially making the credit union better able to withstand financial shocks. Losses, on the other hand, diminish a credit union's ability to do those things.

M G EMPLOYEES received below-average marks on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

M G EMPLOYEES had an earnings ratio of 0.00 percent in our test, above 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.