Safe and Sound

UNITY CATHOLIC

Parma, OH
3
Star Rating
Parma, OH-based UNITY CATHOLIC is an NCUA-insured credit union founded in 1942. Regulatory filings show the credit union having $71.1 million in assets, as of December 31, 2017.

Thanks to the efforts of 10 full-time employees, the credit union holds loans and leases worth $47.2 million. Its 10,324 members currently have $63.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, UNITY CATHOLIC 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 score American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members when a credit union is struggling financially. Therefore, a credit union's level of capital is a useful measurement of its financial strength. From a safety and soundness perspective, more capital is better.

On our test to measure capital adequacy, UNITY CATHOLIC received a score of 10 out of a possible 30 points, failing to reach the national average of 15.65.

UNITY CATHOLIC had a capitalization ratio of 10.00 percent in our test, lower than the average for all credit unions, an indication that it's less well prepared for financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of problem assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having a large number of these kinds of assets may eventually force a credit union 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 money, reducing earnings and elevating the risk of a future failure.

UNITY CATHOLIC fell below the national average of 38.09 on Bankrate's test of asset quality, racking up 28 out of a possible 40 points .

Troubled assets made up 0.00 percent of UNITY CATHOLIC'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

How successful a credit union is at making money affects its long-term survivability. A credit union can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. However, credit unions that are losing money are less able to do those things.

UNITY CATHOLIC scored 12 out of a possible 30 on Bankrate's earnings test, beating the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign that it's beating 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.