Safe and Sound

MERCY HEALTH PARTNERS

TOLEDO, OH
4
Star Rating
Started in 1958, MERCY HEALTH PARTNERS is an NCUA-insured credit union headquartered in TOLEDO, OH. The credit union holds $20.6 million in assets, according to December 31, 2017, regulatory filings.

Members have $9.5 million on deposit tended by 7 full-time employees. With that footprint, the credit union has amassed loans and leases worth $9.5 million. Its 3,326 members currently have $17.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MERCY HEALTH PARTNERS 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 important criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for members when a credit union is struggling financially. Therefore, an institution's level of capital is a useful measurement of its financial fortitude. When it comes to safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, MERCY HEALTH PARTNERS racked up 20 out of a possible 30 points, above the national average of 15.65.

MERCY HEALTH PARTNERS appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 20.00 percent in our test, above the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the impact of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having a large number of these kinds of assets means a credit union may have to use capital to absorb losses, decreasing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, reducing earnings and increasing the risk of a future failure.

On Bankrate's asset quality test, MERCY HEALTH PARTNERS scored 36 out of a possible 40 points, less than the national average of 38.09 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 profitability affects its safety and soundness. Earnings may be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, likely making the credit union better able to withstand economic shocks. However, credit unions that are losing money are less able to do those things.

MERCY HEALTH PARTNERS scored 2 out of a possible 30 on Bankrate's earnings test, lower than the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, better than 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.