Safe and Sound

MUNICIPAL EMPL.CREDIT UNION OF BALT

Baltimore, MD
4
Star Rating
MUNICIPAL EMPL.CREDIT UNION OF BALT is an NCUA-insured credit union started in 1936 and currently headquartered in Baltimore, MD. As of December 31, 2017, the credit union had assets of $1.17 billion.

Thanks to the efforts of 281 full-time employees, the credit union holds loans and leases worth $768.3 million. Its 112,743 members currently have $996.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MUNICIPAL EMPL.CREDIT UNION OF BALT exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three key criteria Bankrate used to score U.S. credit unions.

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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 experiencing economic instability. It follows then that when it comes to measuring an a credit union's financial strength, capital is useful. When looking at safety and soundness, the higher the capital, the better.

MUNICIPAL EMPL.CREDIT UNION OF BALT received a score of 14 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, below the national average of 15.65.

MUNICIPAL EMPL.CREDIT UNION OF BALT appears to be weaker than its peers in this area, with a capitalization ratio of 14.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

Having lots of these types of assets means a credit union may have to use capital to absorb losses, shrinking 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, resulting in reduced earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, MUNICIPAL EMPL.CREDIT UNION OF BALT scored 36 out of a possible 40 points, less than the national average of 38.09 points.

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative 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, boosting its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand economic shocks. However, credit unions that are losing money have less ability to do those things.

On Bankrate's earnings test, MUNICIPAL EMPL.CREDIT UNION OF BALT scored 8 out of a possible 30, falling short of 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, an indication that it's outperforming 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.