Safe and Sound

UNIVERSITY OF TOLEDO

TOLEDO, OH
4
Star Rating
UNIVERSITY OF TOLEDO is a TOLEDO, OH-based, NCUA-insured credit union founded in 1964. Regulatory filings show the credit union having assets of $71.9 million, as of December 31, 2017.

Members have $32.7 million on deposit tended by 15 full-time employees. With that footprint, the credit union currently holds loans and leases worth $32.7 million. UNIVERSITY OF TOLEDO's 6,511 members currently have $63.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, UNIVERSITY OF TOLEDO 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 grade American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for members during times of financial trouble for the credit union. Therefore, when it comes to measuring an an institution's financial strength, capital is crucial. When it comes to safety and soundness, more capital is preferred.

UNIVERSITY OF TOLEDO received a score of 12 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, below the national average of 15.65.

UNIVERSITY OF TOLEDO's capitalization ratio of 12.00 percent in our test was less than the average for all credit unions, a sign that it's on less solid financial footing than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as past-due mortgages.

Having large numbers of these types of assets may eventually require a credit union to use capital to absorb losses, decreasing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, decreasing earnings and increasing the risk of a future failure.

On Bankrate's test of asset quality, UNIVERSITY OF TOLEDO scored 40 out of a possible 40 points, beating out the national average of 38.09 points.

UNIVERSITY OF TOLEDO's ratio of problem assets was 0.00 percent in our test, below the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Losses, on the other hand, lessen a credit union's ability to do those things.

UNIVERSITY OF TOLEDO received below-average marks on Bankrate's test of earnings, achieving a score of 4 out of a possible 30.

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 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.