Safe and Sound

CHEM FAMILY

Anniston, AL
4
Star Rating
CHEM FAMILY is an NCUA-insured credit union started in 1928 and currently headquartered in Anniston, AL. Regulatory filings show the credit union having assets of $6.8 million, as of December 31, 2017.

The credit union currently holds loans and leases worth $894,912. Its 282 members currently have $5.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CHEM FAMILY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three important criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and as protection for members when a credit union is experiencing economic trouble. It follows then that when it comes to measuring an an institution's financial strength, capital is useful. When looking at safety and soundness, the more capital, the better.

CHEM FAMILY achieved a score of 20 out of a possible 30 points on our test to measure capital adequacy, exceeding the national average of 15.65.

CHEM FAMILY appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 20.00 percent in our test, above the average for all credit unions.

Asset Quality Score

Bankrate uses this test to estimate the effect of troubled assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with a large number of these kinds of assets may eventually be required to use capital to absorb losses, reducing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, pushing down earnings and increasing the chances of a failure in the future.

On Bankrate's asset quality test, CHEM FAMILY scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

Earnings score

A credit union's ability to earn money has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or use them to deal with problematic loans, likely making the credit union better able to withstand financial trouble. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's earnings test, CHEM FAMILY scored 2 out of a possible 30, falling short of the national average of 10.11.

CHEM FAMILY had an earnings ratio of 0.00 percent in our test, better 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.