Safe and Sound

THE CATHOLIC

AVON LAKE, OH
4
Star Rating
THE CATHOLIC is an NCUA-insured credit union started in 1956 and currently based in AVON LAKE, OH. Regulatory filings show the credit union having assets of $10.9 million, as of December 31, 2017.

With 2 full-time employees, the credit union currently holds loans and leases worth $3.4 million. THE CATHOLIC's 1,492 members currently have $9.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, THE CATHOLIC exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three key criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial stability, capital is essential. It acts as a cushion against losses and affords protection for members when a credit union is experiencing financial instability. From a safety and soundness perspective, the more capital, the better.

THE CATHOLIC scored below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, scoring 12 out of a possible 30 points.

THE CATHOLIC had a capitalization ratio of 12.00 percent in our test, less than the average for all credit unions, an indication that it could be less resilient in a crisis than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the effect of problem assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

Having extensive holdings of these types of assets means a credit union may have to use capital to cover losses, cutting down on its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, reducing earnings and increasing the chances of a future failure.

On Bankrate's asset quality test, THE CATHOLIC scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

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

Earnings score

A credit union's profitability has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Credit unions that are losing money, however, have less ability to do those things.

THE CATHOLIC did below-average on Bankrate's earnings test, achieving a score of 6 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's doing better than 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.