Safe and Sound

MEMBERS

WINSTON SALEM, NC
4
Star Rating
MEMBERS is an NCUA-insured credit union founded in 1953 and currently based in WINSTON SALEM, NC. As of June 30, 2017, the credit union held assets of $287.2 million.

With 95 full-time employees, the credit union holds loans and leases worth $119.3 million. Its 49,870 members currently have $254.5 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, MEMBERS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three key criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and provides protection for members during periods of financial trouble for the credit union. Therefore, an institution's level of capital is a useful measurement of its financial resilience. From a safety and soundness perspective, the higher the capital, the better.

MEMBERS came in below the national average of 15.26 on our test to measure the adequacy of a credit union's capital, scoring 12 out of a possible 30 points.

MEMBERS appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 11.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

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

A credit union with a large number of these kinds of assets could eventually have to use capital to cover losses, diminishing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, diminishing earnings and elevating the chances of a failure in the future.

MEMBERS scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating the national average of 38.15.

Troubled assets made up 3.00 percent of MEMBERS's total assets in our test, less 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 has an effect on its safety and soundness. Earnings may be retained by the credit union, boosting its capital buffer, or be used to address problematic loans, potentially making the credit union better prepared to withstand financial shocks. Obviously, credit unions that are losing money have less ability to do those things.

MEMBERS scored 16 out of a possible 30 on Bankrate's test of earnings, beating out the national average of 10.31.

One sign that the credit union is doing better than its peers in this area was its earnings ratio of 8.00 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.