Safe and Sound

NASA

UPPER MARLBORO, MD
4
Star Rating
Started in 1949, NASA is an NCUA-insured credit union based in UPPER MARLBORO, MD. Regulatory filings show the credit union having $2.20 billion in assets, as of June 30, 2017.

Thanks to the work of 289 full-time employees, the credit union currently holds loans and leases worth $1.74 billion. NASA's 146,032 members currently have $1.76 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, NASA exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and provides protection for members during periods of financial instability for the credit union. It follows then that when it comes to measuring an a credit union's financial strength, capital is useful. When looking at safety and soundness, the higher the capital, the better.

NASA received a score of 10 out of a possible 30 points on our test to measure capital adequacy, falling short of the national average of 15.26.

NASA's capitalization ratio of 10.00 percent in our test was less than the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

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

Having large numbers of these types of assets suggests a credit union could have to use capital to absorb losses, decreasing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, NASA scored 36 out of a possible 40 points, less than the national average of 38.15 points.

NASA's ratio of troubled assets was 8.00 percent in our test, exceeding the national average and something to keep an eye on.

Earnings score

A credit union's earnings performance has an effect on its safety and soundness. A credit union can retain its earnings, increasing its capital cushion, or use them to address problematic loans, potentially making the credit union better prepared to withstand financial shocks. Conversely, losses diminish a credit union's ability to do those things.

NASA scored 14 out of a possible 30 on Bankrate's test of earnings, above the national average of 10.31.

NASA had an earnings ratio of 7.00 percent in our test, better than the average for all credit unions, an indication 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.