Safe and Sound

NATIONAL INSTITUTES OF HEALTH

ROCKVILLE, MD
3
Star Rating
ROCKVILLE, MD-based NATIONAL INSTITUTES OF HEALTH is an NCUA-insured credit union started in 1940. The credit union has assets of $616.9 million, according to June 30, 2017, regulatory filings.

Members have $361.7 million on deposit tended by 100 full-time employees. With that footprint, the credit union holds loans and leases worth $361.7 million. NATIONAL INSTITUTES OF HEALTH's 39,460 members currently have $556.5 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, NATIONAL INSTITUTES OF HEALTH exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three major criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial resilience, capital is key. It acts as a cushion against losses and as protection for members during periods of economic instability for the credit union. When it comes to safety and soundness, the more capital, the better.

On our test to measure capital adequacy, NATIONAL INSTITUTES OF HEALTH received a score of 6 out of a possible 30 points, lower than the national average of 15.26.

NATIONAL INSTITUTES OF HEALTH's capitalization ratio of 8.00 percent in our test was less than the average for all credit unions, a sign that it's less well prepared for financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the effect of troubled assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

Having a large number of these kinds of assets suggests a credit union may eventually have to use capital to cover losses, decreasing its buffer 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, resulting in lower earnings and potentially more risk of a future failure.

NATIONAL INSTITUTES OF HEALTH did better than the national average of 38.15 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

Troubled assets made up 6.00 percent of the credit union's total assets in our test, less than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. Earnings can be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses reduce a credit union's ability to do those things.

On Bankrate's test of earnings, NATIONAL INSTITUTES OF HEALTH scored 8 out of a possible 30, lower than the national average of 10.31.

One indication that NATIONAL INSTITUTES OF HEALTH is outperforming its peers in this area was its earnings ratio of 3.00 percent in our test, higher than 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.