Safe and Sound

MIAMI UNIVERSITY COMMUNITY

Oxford, OH
4
Star Rating
Started in 1969, MIAMI UNIVERSITY COMMUNITY is an NCUA-insured credit union based in Oxford, OH. As of December 31, 2017, the credit union had assets of $62.7 million.

With 14 full-time employees, the credit union currently holds loans and leases worth $33.4 million. MIAMI UNIVERSITY COMMUNITY's 5,656 members currently have $56.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MIAMI UNIVERSITY COMMUNITY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three important criteria Bankrate used to score American 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 resilience, capital is important. It acts as a cushion against losses and provides protection for members when a credit union is struggling financially. When looking at safety and soundness, more capital is better.

MIAMI UNIVERSITY COMMUNITY received a score of 12 out of a possible 30 points on our test to measure capital adequacy, failing to reach the national average of 15.65.

MIAMI UNIVERSITY COMMUNITY had a capitalization ratio of 12.00 percent in our test, below the average for all credit unions, suggesting that it could have a harder time weathering 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 troubled assets, such as past-due mortgages.

Having extensive holdings of these kinds of assets suggests a credit union may have to use capital to cover losses, shrinking its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in depressed earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, MIAMI UNIVERSITY COMMUNITY scored 40 out of a possible 40 points, beating out the national average of 38.09 points.

Troubled assets made up 0.00 percent of MIAMI UNIVERSITY COMMUNITY's total assets in our test, below the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance affects its safety and soundness. Earnings may be retained by the credit union, expanding its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, lessen a credit union's ability to do those things.

MIAMI UNIVERSITY COMMUNITY scored 10 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 10.11.

One indication that MIAMI UNIVERSITY COMMUNITY is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, better than the average for all credit unions.

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.