Safe and Sound

DOE RUN

BRANDENBURG, KY
5
Star Rating
DOE RUN is a BRANDENBURG, KY-based, NCUA-insured credit union dating back to 1979. As of December 31, 2017, the credit union held assets of $9.9 million.

Thanks to the work of 7 full-time employees, the credit union holds loans and leases worth $6.6 million. Its 1,979 members currently have $8.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, DOE RUN exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members when a credit union is experiencing financial instability. Therefore, an institution's level of capital is a key measurement of its financial strength. From a safety and soundness perspective, the more capital, the better.

On our test to measure capital adequacy, DOE RUN scored 16 out of a possible 30 points, above the national average of 15.65.

DOE RUN's capitalization ratio of 16.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of problem assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having large numbers of these types of assets means a credit union may have 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 thus aren't earning money, pushing down earnings and elevating the risk of a future failure.

DOE RUN fell short of the national average of 38.09 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

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

Earnings score

How successful a credit union is at earning money affects its safety and soundness. A credit union can retain its earnings, increasing its capital cushion, or use them to address problematic loans, likely making the credit union better prepared to withstand financial trouble. Conversely, losses diminish a credit union's ability to do those things.

On Bankrate's test of earnings, DOE RUN scored 18 out of a possible 30, above the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, an indication that it's doing better than 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.