Safe and Sound

SOUTHEASTERN OHIO

Cambridge, OH
4
Star Rating
Cambridge, OH-based SOUTHEASTERN OHIO is an NCUA-insured credit union founded in 0. As of December 31, 2017, the credit union had assets of $27.2 million.

Members have $17.2 million on deposit tended by 12 full-time employees. With that footprint, the credit union has amassed loans and leases worth $17.2 million. Its 5,330 members currently have $23.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SOUTHEASTERN OHIO 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 grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is essential. It acts as a bulwark against losses and as protection for members during periods of financial trouble for the credit union. When it comes to safety and soundness, more capital is better.

SOUTHEASTERN OHIO did better than the national average of 15.65 points on our test to measure capital adequacy, receiving a score of 16 out of a possible 30 points.

SOUTHEASTERN OHIO's capitalization ratio of 16.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

This test's purpose is to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as unpaid mortgages.

A credit union with lots of these kinds of assets may eventually be required to use capital to absorb losses, decreasing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a future failure.

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

SOUTHEASTERN OHIO's ratio of problem assets was 0.00 percent in our test, less than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects its safety and soundness. A credit union can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, likely making the credit union better able to withstand economic shocks. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's test of earnings, SOUTHEASTERN OHIO scored 12 out of a possible 30, exceeding the national average of 10.11.

One indication that SOUTHEASTERN OHIO is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.