Safe and Sound

NOTRE DAME 2901

Baltimore, MD
4
Star Rating
NOTRE DAME 2901 is an NCUA-insured credit union founded in 1959 and currently headquartered in Baltimore, MD. The credit union holds $1.9 million in assets, according to December 31, 2017, regulatory filings.

NOTRE DAME 2901's 218 members currently have $1.7 million in shares with the credit union. With that footprint, the credit union has amassed loans and leases worth $154,404.

Overall, Bankrate believes that, as of December 31, 2017, NOTRE DAME 2901 exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three major criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and provides protection for members when a credit union is struggling financially. Therefore, an institution's level of capital is a crucial measurement of its financial strength. When it comes to safety and soundness, more capital is preferred.

NOTRE DAME 2901 received a score of 12 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, coming in below the national average of 15.65.

NOTRE DAME 2901's capitalization ratio of 12.00 percent in our test was less than the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the impact of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with a large number of these types of assets could eventually be forced to use capital to absorb losses, diminishing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, pushing down earnings and elevating the risk of a failure in the future.

NOTRE DAME 2901 scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating out the national average of 38.09.

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money affects its safety and soundness. A credit union can retain its earnings, boosting its capital cushion, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand economic shocks. Conversely, losses diminish a credit union's ability to do those things.

On Bankrate's earnings test, NOTRE DAME 2901 scored 6 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, suggesting that it's running ahead of 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.