Safe and Sound

SANDUSKY OHIO EDISON EMPLOYEE

SANDUSKY, OH
4
Star Rating
Founded in 1939, SANDUSKY OHIO EDISON EMPLOYEE is an NCUA-insured credit union headquartered in SANDUSKY, OH. The credit union has $754,736 in assets, according to June 30, 2017, regulatory filings.

The credit union has amassed loans and leases worth $242,693. Its 132 members currently have $633,597 in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, SANDUSKY OHIO EDISON EMPLOYEE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did 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 is a crucial measurement of an institution's financial fortitude. It acts as a bulwark against losses and as protection for members when a credit union is struggling financially. When it comes to safety and soundness, more capital is better.

SANDUSKY OHIO EDISON EMPLOYEE exceeded the national average of 15.26 points on our test to measure capital adequacy, achieving a score of 24 out of a possible 30 points.

SANDUSKY OHIO EDISON EMPLOYEE had a capitalization ratio of 16.00 percent in our test, above the average for all credit unions, a sign that it's on more solid financial footing than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of problem assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with extensive holdings of these kinds of assets may eventually have to use capital to cover losses, decreasing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in depressed earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, SANDUSKY OHIO EDISON EMPLOYEE scored 40 out of a possible 40 points, above the national average of 38.15 points.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. Earnings can be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's test of earnings, SANDUSKY OHIO EDISON EMPLOYEE scored 2 out of a possible 30, failing to reach the national average of 10.31.

One indication that SANDUSKY OHIO EDISON EMPLOYEE is lagging behind its peers in this area was its earnings ratio of 0.00 percent in our test, below 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.