Safe and Sound

REGISTER GUARD EMPLOYEES

Springfield, OR
5
Star Rating
REGISTER GUARD EMPLOYEES is a Springfield, OR-based, NCUA-insured credit union started in 1954. As of June 30, 2017, the credit union had assets of $22.4 million.

Thanks to the work of 6 full-time employees, the credit union has amassed loans and leases worth $14.2 million. Its 3,006 members currently have $18.9 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, REGISTER GUARD EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three major criteria Bankrate used to score American credit unions on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of a credit union's financial resilience. It works as a bulwark against losses and affords protection for members when a credit union is experiencing financial instability. When it comes to safety and soundness, the more capital, the better.

REGISTER GUARD EMPLOYEES beat out the national average of 15.26 points on our test to measure capital adequacy, scoring 22 out of a possible 30 points.

REGISTER GUARD EMPLOYEES's capitalization ratio of 16.00 percent in our test was better than the average for all credit unions, suggesting that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as unpaid loans.

A credit union with extensive holdings of these kinds of assets may eventually have to use capital to cover losses, reducing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, decreasing earnings and elevating the risk of a future failure.

On Bankrate's test of asset quality, REGISTER GUARD EMPLOYEES scored 40 out of a possible 40 points, better than the national average of 38.15 points.

Troubled assets made up 1.00 percent of the credit union'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 earning money affects its safety and soundness. 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 better able to withstand economic shocks. Obviously, credit unions that are losing money are less able to do those things.

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

One sign that the credit union is running ahead of its peers in this area was its earnings ratio of 8.00 percent in our test, better 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.