Safe and Sound

ST. MONICA

GARY, IN
5
Star Rating
ST. MONICA is a GARY, IN-based, NCUA-insured credit union that opened its doors in 1953. The credit union has $153,651 in assets, according to June 30, 2017, regulatory filings.

The credit union holds loans and leases worth $0. Its 189 members currently have $142,163 in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, ST. MONICA 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 faired on the three major criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of a credit union's financial fortitude. It works as a bulwark against losses and affords protection for members when a credit union is experiencing financial instability. When looking at safety and soundness, the more capital, the better.

ST. MONICA received a score of 6 out of a possible 30 points on our test to measure capital adequacy, failing to reach the national average of 15.26.

ST. MONICA had a capitalization ratio of 7.00 percent in our test, worse than the average for all credit unions, a sign that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

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

A credit union with extensive holdings of these types of assets could eventually have to use capital to cover 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, resulting in depressed earnings and potentially more risk of a future failure.

ST. MONICA scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating out the national average of 38.15.

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, giving a boost to its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in tough times. Obviously, credit unions that are losing money are less able to do those things.

ST. MONICA scored 2 out of a possible 30 on Bankrate's earnings test, below the national average of 10.31.

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.