Safe and Sound

CN/IC EMPLOYEES

MEMPHIS, TN
5
Star Rating
MEMPHIS, TN-based CN/IC EMPLOYEES is an NCUA-insured credit union founded in 1928. Regulatory filings show the credit union having assets of $8.0 million, as of December 31, 2017.

Thanks to the work of 2 full-time employees, the credit union currently holds loans and leases worth $3.8 million. CN/IC EMPLOYEES's 1,243 members currently have $6.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CN/IC EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three important criteria Bankrate used to grade U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of an institution's financial resilience. It acts as a bulwark against losses and provides protection for members when a credit union is struggling financially. From a safety and soundness perspective, more capital is better.

CN/IC EMPLOYEES achieved a score of 30 out of a possible 30 points on our test to measure capital adequacy, above the national average of 15.65.

CN/IC EMPLOYEES appears to be on more solid financial footing than its peers, with a capitalization ratio of 30.00 percent in our test, above the average for all credit unions.

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 unpaid loans.

A credit union with lots of these types of assets may eventually be required to use capital to cover losses, cutting down on its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, decreasing earnings and increasing the chances of a failure in the future.

CN/IC EMPLOYEES scored below the national average of 38.09 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

Troubled assets made up 0.00 percent of CN/IC EMPLOYEES's total assets in our test, beneath the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. A credit union can retain its earnings, increasing its capital cushion, or use them to address problematic loans, potentially making the credit union better prepared to withstand financial trouble. Conversely, losses reduce a credit union's ability to do those things.

On Bankrate's earnings test, CN/IC EMPLOYEES scored 8 out of a possible 30, less than the national average of 10.11.

One indication that CN/IC EMPLOYEES is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.