Safe and Sound

OHIO EDUCATIONAL

Cleveland, OH
3
Star Rating
OHIO EDUCATIONAL is a Cleveland, OH-based, NCUA-insured credit union that opened its doors in 1900. The credit union holds assets of $128.7 million, according to December 31, 2017, regulatory filings.

With 47 full-time employees, the credit union currently holds loans and leases worth $99.2 million. Its 17,098 members currently have $116.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, OHIO EDUCATIONAL exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three important criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of a credit union's financial resilience. It acts as a cushion against losses and as protection for members when a credit union is struggling financially. When looking at safety and soundness, more capital is better.

On our test to measure capital adequacy, OHIO EDUCATIONAL received a score of 6 out of a possible 30 points, below the national average of 15.65.

OHIO EDUCATIONAL had a capitalization ratio of 6.00 percent in our test, below the average for all credit unions, suggesting that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

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

Having large numbers of these types of assets suggests a credit union could eventually have to use capital to cover losses, cutting down on its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in depressed earnings and potentially more risk of a future failure.

OHIO EDUCATIONAL fell short of the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

Troubled assets made up 0.00 percent of the credit union's total assets in our test, below the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. Earnings may be retained by the credit union, expanding its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's earnings test, OHIO EDUCATIONAL scored 12 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 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.