Safe and Sound

TOLEDO URBAN

Toledo, OH
1
Star Rating
Toledo, OH-based TOLEDO URBAN is an NCUA-insured credit union started in 1996. The credit union has assets of $6.8 million, according to December 31, 2017, regulatory filings.

Members have $5.9 million on deposit tended by 7 full-time employees. With that footprint, the credit union holds loans and leases worth $5.9 million. TOLEDO URBAN's 2,649 members currently have $5.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TOLEDO URBAN exhibited a significantly below-average condition, earning 1 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to grade American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and provides protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial strength, capital is useful. When looking at safety and soundness, the more capital, the better.

TOLEDO URBAN received a score of 2 out of a possible 30 points on our test to measure capital adequacy, failing to reach the national average of 15.65.

TOLEDO URBAN appears to be weaker than its peers in this area, with a capitalization ratio of 2.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

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

Having lots of these kinds of assets means a credit union could eventually have to use capital to cover losses, reducing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in lower earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, TOLEDO URBAN scored 0 out of a possible 40 points, less than the national average of 38.09 points.

TOLEDO URBAN's ratio of problem assets was 1.00 percent in our test, the same as the national average.

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, likely making the credit union better able to withstand financial trouble. Obviously, credit unions that are losing money are less able to do those things.

TOLEDO URBAN scored 0 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, better 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.