Safe and Sound

SELF-HELP

DURHAM, NC
4
Star Rating
SELF-HELP is an NCUA-insured credit union started in 1983 and currently headquartered in DURHAM, NC. As of June 30, 2017, the credit union had assets of $851.3 million.

Thanks to the efforts of 181 full-time employees, the credit union holds loans and leases worth $579.1 million. Its 69,718 members currently have $724.1 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, SELF-HELP exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three key criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides protection for members during times of financial trouble for the credit union. It follows then that a credit union's level of capital is a valuable measurement of its financial strength. From a safety and soundness perspective, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, SELF-HELP received a score of 10 out of a possible 30 points, falling short of the national average of 15.26.

SELF-HELP's capitalization ratio of 10.00 percent in our test was worse than the average for all credit unions, an indication that it's weaker than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as past-due mortgages.

Having lots of these types of assets may eventually force a credit union to use capital to cover losses, cutting down on its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in lower earnings and potentially more risk of a future failure.

SELF-HELP finished below the national average of 38.15 on Bankrate's test of asset quality, racking up 32 out of a possible 40 points .

An above-average ratio of troubled assets of 15.00 percent in our test was something to watch for SELF-HELP.

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. Earnings can be retained by the credit union, boosting its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. Credit unions that are losing money, however, are less able to do those things.

SELF-HELP beat the national average on Bankrate's test of earnings, achieving a score of 22 out of a possible 30.

SELF-HELP had an earnings ratio of 14.00 percent in our test, higher than the average for all credit unions, suggesting 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.