Safe and Sound

OHIO OPERATING ENGINEERS

CLEVELAND, OH
3
Star Rating
Founded in 1961, OHIO OPERATING ENGINEERS is an NCUA-insured credit union based in CLEVELAND, OH. As of December 31, 2017, the credit union held assets of $6.3 million.

Thanks to the work of 2 full-time employees, the credit union holds loans and leases worth $3.8 million. OHIO OPERATING ENGINEERS's 1,146 members currently have $5.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, OHIO OPERATING ENGINEERS exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three major criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of an institution's financial fortitude. It works as a cushion against losses and as protection for members during times of financial instability for the credit union. From a safety and soundness perspective, the higher the capital, the better.

OHIO OPERATING ENGINEERS finished below the national average of 15.65 on our test to measure capital adequacy, receiving a score of 8 out of a possible 30 points.

OHIO OPERATING ENGINEERS had a capitalization ratio of 8.00 percent in our test, less than the average for all credit unions, a sign that it's weaker than its peers.

Asset Quality Score

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

Having large numbers of these types of assets may eventually require a credit union to use capital to absorb losses, reducing 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 money, resulting in lower earnings and potentially more risk of a failure in the future.

OHIO OPERATING ENGINEERS scored 32 out of a possible 40 points on Bankrate's asset quality test, less than the national average of 38.09.

Troubled assets made up 0.00 percent of OHIO OPERATING ENGINEERS's total assets in our test, less than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money affects its safety and soundness. Earnings may be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. However, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, OHIO OPERATING ENGINEERS scored 14 out of a possible 30, beating the national average of 10.11.

OHIO OPERATING ENGINEERS had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign 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.