Safe and Sound

SELF-HELP

DURHAM, NC
2
Star Rating
DURHAM, NC-based SELF-HELP is an NCUA-insured credit union founded in 2008. The credit union holds $966.2 million in assets, according to June 30, 2017, regulatory filings.

Thanks to the work of 324 full-time employees, the credit union currently holds loans and leases worth $572.7 million. Its 78,803 members currently have $778.3 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, SELF-HELP exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three key criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and as protection for members when a credit union is experiencing financial instability. It follows then that an institution's level of capital is a useful measurement of its financial strength. From a safety and soundness perspective, the more capital, the better.

SELF-HELP finished below the national average of 15.26 on our test to measure the adequacy of a credit union's capital, scoring 0 out of a possible 30 points.

SELF-HELP had a capitalization ratio of 5.00 percent in our test, worse than the average for all credit unions, suggesting that it's weaker than its peers.

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 loans.

Having lots of these kinds of assets could eventually force a credit union to use capital to cover losses, cutting down on its equity buffer. 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 depressed earnings and potentially more risk of a failure in the future.

SELF-HELP fell below the national average of 38.15 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

SELF-HELP's ratio of troubled assets was 9.00 percent in our test, exceeding the national average and something to keep an eye on.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or use them to address problematic loans, likely making the credit union better prepared to withstand financial trouble. Credit unions that are losing money, however, have less ability to do those things.

SELF-HELP scored 0 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 10.31.

The credit union had an earnings ratio of 18.00 percent in our test, higher than the average for all credit unions, a sign that it's outperforming 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.