Safe and Sound

MT. AIRY BAPTIST CHURCH

WASHINGTON, DC
4
Star Rating
MT. AIRY BAPTIST CHURCH is a WASHINGTON, DC-based, NCUA-insured credit union that opened its doors in 1985. Regulatory filings show the credit union having assets of $1.2 million, as of December 31, 2017.

MT. AIRY BAPTIST CHURCH's 434 members currently have $814,702 in shares with the credit union. With that footprint, the credit union has amassed loans and leases worth $317,161.

Overall, Bankrate believes that, as of December 31, 2017, MT. AIRY BAPTIST CHURCH exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired 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

Capital works as a cushion against losses and affords protection for members when a credit union is experiencing financial trouble. It follows then that when it comes to measuring an an institution's financial stability, capital is crucial. From a safety and soundness perspective, more capital is preferred.

On our test to measure capital adequacy, MT. AIRY BAPTIST CHURCH scored 30 out of a possible 30 points, exceeding the national average of 15.65.

MT. AIRY BAPTIST CHURCH's capitalization ratio of 30.00 percent in our test was above the average for all credit unions, suggesting that it's on more solid financial footing than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as past-due loans.

Having extensive holdings of these types of assets suggests a credit union could eventually have to use capital to absorb losses, shrinking its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a future failure.

MT. AIRY BAPTIST CHURCH did better than the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

Earnings score

A credit union's profitability has an effect on its long-term survivability. Earnings may be retained by the credit union, giving a boost to its capital cushion, or be used to deal with problematic loans, likely making the credit union better prepared to withstand economic trouble. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's test of earnings, MT. AIRY BAPTIST CHURCH scored 0 out of a possible 30, below the national average of 10.11.

One sign that MT. AIRY BAPTIST CHURCH 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.