Safe and Sound

RALEIGH CO. EDUCATORS

Beckley, WV
5
Star Rating
RALEIGH CO. EDUCATORS is an NCUA-insured credit union founded in 1980 and currently based in Beckley, WV. Regulatory filings show the credit union having assets of $23.1 million, as of June 30, 2017.

Members have $7.5 million on deposit tended by 5 full-time employees. With that footprint, the credit union currently holds loans and leases worth $7.5 million. RALEIGH CO. EDUCATORS's 2,334 members currently have $19.0 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, RALEIGH CO. EDUCATORS exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three major criteria Bankrate used to score U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members when a credit union is experiencing financial instability. Therefore, an institution's level of capital is a crucial measurement of its financial fortitude. From a safety and soundness perspective, the more capital, the better.

RALEIGH CO. EDUCATORS did better than the national average of 15.26 points on our test to measure capital adequacy, racking up 26 out of a possible 30 points.

RALEIGH CO. EDUCATORS had a capitalization ratio of 18.00 percent in our test, above the average for all credit unions, suggesting that it could be more resilient in a crisis than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the effect of problem assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having a large number of these kinds of assets means a credit union could have to use capital to cover losses, reducing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in depressed earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, RALEIGH CO. EDUCATORS scored 40 out of a possible 40 points, beating out the national average of 38.15 points.

Troubled assets made up 2.00 percent of the credit union's total assets in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. Earnings can be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, potentially making the credit union better able to withstand financial trouble. Credit unions that are losing money, however, have less ability to do those things.

RALEIGH CO. EDUCATORS scored 12 out of a possible 30 on Bankrate's test of earnings, above the national average of 10.31.

One sign that RALEIGH CO. EDUCATORS is beating its peers in this area was its earnings ratio of 5.00 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.