Safe and Sound

MARION COMMUNITY

MARION, OH
4
Star Rating
MARION COMMUNITY is an NCUA-insured credit union started in 1960 and currently based in MARION, OH. Regulatory filings show the credit union having assets of $64.6 million, as of December 31, 2017.

Thanks to the work of 23 full-time employees, the credit union holds loans and leases worth $36.7 million. MARION COMMUNITY's 8,442 members currently have $57.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MARION COMMUNITY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three important criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial stability, capital is valuable. It works as a cushion against losses and affords protection for members during periods of financial trouble for the credit union. When it comes to safety and soundness, the more capital, the better.

MARION COMMUNITY fell below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, receiving a score of 12 out of a possible 30 points.

MARION COMMUNITY's capitalization ratio of 12.00 percent in our test was less than the average for all credit unions, suggesting that it could be less resilient in a crisis 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 unpaid loans.

Having lots of these types of assets suggests a credit union could eventually have to use capital to absorb losses, decreasing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a failure in the future.

MARION COMMUNITY did better than the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

A lower-than-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, boosting its capital cushion, or be used to deal with problematic loans, potentially making the credit union better able to withstand economic shocks. Conversely, losses take away from a credit union's ability to do those things.

MARION COMMUNITY scored 6 out of a possible 30 on Bankrate's test of earnings, below the national average of 10.11.

MARION COMMUNITY had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's outperforming 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.