Safe and Sound

MORROW COUNTY

MOUNT GILEAD, OH
5
Star Rating
Founded in 1974, MORROW COUNTY is an NCUA-insured credit union headquartered in MOUNT GILEAD, OH. As of December 31, 2017, the credit union had assets of $6.3 million.

Members have $2.6 million on deposit tended by 2 full-time employees. With that footprint, the credit union currently holds loans and leases worth $2.6 million. MORROW COUNTY's 1,234 members currently have $5.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MORROW COUNTY exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union faired on the three key criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and provides protection for members during times of economic trouble for the credit union. Therefore, an institution's level of capital is a key measurement of its financial strength. When it comes to safety and soundness, more capital is preferred.

MORROW COUNTY scored 28 out of a possible 30 points on our test to measure capital adequacy, beating the national average of 15.65.

MORROW COUNTY had a capitalization ratio of 28.00 percent in our test, above the average for all credit unions, an indication that it's more well prepared for financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the effect of problem assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

Having large numbers of these kinds of assets means a credit union could have to use capital to absorb losses, diminishing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, reducing earnings and increasing the chances of a failure in the future.

On Bankrate's asset quality test, MORROW COUNTY 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 the credit union's total assets 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 has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to address problematic loans, potentially making the credit union better able to withstand economic trouble. Conversely, losses take away from a credit union's ability to do those things.

MORROW COUNTY scored 12 out of a possible 30 on Bankrate's test of earnings, exceeding 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 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.