Safe and Sound

UNITED METHODIST FINANCIAL CREDIT U

NORTH CANTON, OH
4
Star Rating
UNITED METHODIST FINANCIAL CREDIT U is an NCUA-insured credit union started in 0 and currently headquartered in NORTH CANTON, OH. As of December 31, 2017, the credit union held assets of $85.1 million.

Members have $36.6 million on deposit tended by 14 full-time employees. With that footprint, the credit union holds loans and leases worth $36.6 million. UNITED METHODIST FINANCIAL CREDIT U's 4,344 members currently have $73.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, UNITED METHODIST FINANCIAL CREDIT U 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 important criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial fortitude, capital is essential. When it comes to safety and soundness, the more capital, the better.

UNITED METHODIST FINANCIAL CREDIT U finished below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, scoring 14 out of a possible 30 points.

UNITED METHODIST FINANCIAL CREDIT U appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 14.00 percent in our test, below the average for all credit unions.

Asset Quality Score

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

A credit union with lots of these types of assets may eventually be forced to use capital to absorb losses, shrinking its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, pushing down earnings and increasing the risk of a future failure.

UNITED METHODIST FINANCIAL CREDIT U scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating the national average of 38.09.

The credit union's ratio of troubled assets was 0.00 percent in our test, lower 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 long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. Credit unions that are losing money, however, have less ability to do those things.

UNITED METHODIST FINANCIAL CREDIT U did below-average on Bankrate's test of earnings, achieving a score of 6 out of a possible 30.

One indication that UNITED METHODIST FINANCIAL CREDIT U is outperforming 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.