Safe and Sound

MEMBERS TRUST

MASON, OH
4
Star Rating
MASON, OH-based MEMBERS TRUST is an NCUA-insured credit union started in 1963. The credit union has assets of $23.6 million, according to December 31, 2017, regulatory filings.

Members have $15.0 million on deposit tended by 6 full-time employees. With that footprint, the credit union currently holds loans and leases worth $15.0 million. Its 4,343 members currently have $19.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MEMBERS TRUST exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three major criteria Bankrate used to evaluate 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 affords protection for members during periods of financial instability for the credit union. It follows then that an institution's level of capital is a useful measurement of its financial fortitude. From a safety and soundness perspective, the more capital, the better.

MEMBERS TRUST scored above the national average of 15.65 points on our test to measure capital adequacy, scoring 24 out of a possible 30 points.

MEMBERS TRUST had a capitalization ratio of 24.00 percent in our test, better 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 try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as unpaid loans.

Having large numbers of these types of assets could eventually require a credit union to use capital to absorb losses, diminishing 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 money, pushing down earnings and increasing the chances of a future failure.

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

MEMBERS TRUST's ratio of problem assets was 0.00 percent in our test, less than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or use them to address problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, reduce a credit union's ability to do those things.

On Bankrate's earnings test, MEMBERS TRUST scored 4 out of a possible 30, lower than the national average of 10.11.

MEMBERS TRUST had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's running ahead of 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.