Safe and Sound

BOWATER EMPLOYEES

Calhoun, TN
3
Star Rating
BOWATER EMPLOYEES is a Calhoun, TN-based, NCUA-insured credit union dating back to 1954. The credit union holds $157.8 million in assets, according to December 31, 2017, regulatory filings.

Members have $91.7 million on deposit tended by 48 full-time employees. With that footprint, the credit union has amassed loans and leases worth $91.7 million. Its 18,834 members currently have $141.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BOWATER EMPLOYEES exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three key criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of a credit union's financial resilience. It works as a cushion against losses and provides protection for members when a credit union is struggling financially. When looking at safety and soundness, more capital is preferred.

BOWATER EMPLOYEES received a score of 10 out of a possible 30 points on our test to measure capital adequacy, coming in below the national average of 15.65.

BOWATER EMPLOYEES had a capitalization ratio of 10.00 percent in our test, lower than the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

Bankrate uses this test to estimate the impact of troubled assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having a large number of these kinds of assets suggests a credit union could have to use capital to absorb losses, reducing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, reducing earnings and elevating the risk of a failure in the future.

BOWATER EMPLOYEES scored 36 out of a possible 40 points on Bankrate's test of asset quality, failing to reach the national average of 38.09.

A below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. Earnings may be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, likely making the credit union better able to withstand financial trouble. Conversely, losses reduce a credit union's ability to do those things.

BOWATER EMPLOYEES received below-average marks on Bankrate's earnings test, achieving a score of 4 out of a possible 30.

One indication that the credit union is doing better than its peers in this area was its earnings ratio of 0.00 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.