WHAT IS
SAFE AND SOUND?
Capital is an important measurement of a credit union's financial resilience. It works as a cushion against losses and as protection for members when a credit union is struggling financially. When looking at safety and soundness, the more capital, the better.
MOUNT OLIVE BAPTIST CHURCH did better than the national average of 15.65 points on our test to measure capital adequacy, scoring 20 out of a possible 30 points.
MOUNT OLIVE BAPTIST CHURCH had a capitalization ratio of 20.00 percent in our test, better than the average for all credit unions, a sign that it's more well prepared for financial trouble than its peers.
In this test, Bankrate tries to estimate the impact of problem assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.
Having a large number of these kinds of assets means a credit union could eventually 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 no longer earning money, resulting in depressed earnings and potentially more risk of a future failure.
On Bankrate's asset quality test, MOUNT OLIVE BAPTIST CHURCH scored 40 out of a possible 40 points, beating the national average of 38.09 points.
Troubled assets made up 0.00 percent of the credit union's total assets in our test, beneath the national average and suggestive of superior financial strength compared to other credit unions.
A credit union's profitability affects its long-term survivability. A credit union can retain its earnings, increasing its capital cushion, or use them to deal with problematic loans, likely making the credit union better able to withstand financial shocks. Obviously, credit unions that are losing money are less able to do those things.
On Bankrate's earnings test, MOUNT OLIVE BAPTIST CHURCH scored 30 out of a possible 30, beating the national average of 10.11.
The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's outperforming its peers in this area.
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.
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.