Safe and Sound

CENTRAL NEBRASKA

GRAND ISLAND, NE
4
Star Rating
Founded in 1949, CENTRAL NEBRASKA is an NCUA-insured credit union based in GRAND ISLAND, NE. Regulatory filings show the credit union having $9.0 million in assets, as of December 31, 2017.

Members have $4.0 million on deposit tended by 3 full-time employees. With that footprint, the credit union has amassed loans and leases worth $4.0 million. CENTRAL NEBRASKA's 1,398 members currently have $7.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CENTRAL NEBRASKA exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three major criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is valuable. It acts as a cushion against losses and provides protection for members when a credit union is experiencing economic instability. When it comes to safety and soundness, the more capital, the better.

CENTRAL NEBRASKA scored below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, receiving a score of 12 out of a possible 30 points.

CENTRAL NEBRASKA had a capitalization ratio of 12.00 percent in our test, worse than the average for all credit unions, an indication that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of troubled assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with extensive holdings of these kinds of assets may eventually be forced to use capital to cover losses, decreasing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, reducing earnings and increasing the risk of a failure in the future.

On Bankrate's test of asset quality, CENTRAL NEBRASKA scored 40 out of a possible 40 points, beating out the national average of 38.09 points.

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance affects 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 more resilient in tough times. Credit unions that are losing money, however, are less able to do those things.

CENTRAL NEBRASKA scored 12 out of a possible 30 on Bankrate's test of earnings, beating out the national average of 10.11.

One indication that CENTRAL NEBRASKA is doing better than its peers in this area was its earnings ratio of 0.00 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.