Safe and Sound

EMERALD CREDIT ASSOCIATION

Greenwood, SC
4
Star Rating
Started in 1968, EMERALD CREDIT ASSOCIATION is an NCUA-insured credit union headquartered in Greenwood, SC. Regulatory filings show the credit union having assets of $6.4 million, as of December 31, 2017.

Thanks to the efforts of 4 full-time employees, the credit union holds loans and leases worth $4.3 million. Its 1,319 members currently have $5.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, EMERALD CREDIT ASSOCIATION 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 key criteria Bankrate used to evaluate American credit unions.

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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 struggling financially. It follows then that a credit union's level of capital is a crucial measurement of its financial strength. From a safety and soundness perspective, more capital is preferred.

EMERALD CREDIT ASSOCIATION received a score of 10 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, coming in below the national average of 15.65.

EMERALD CREDIT ASSOCIATION's capitalization ratio of 10.00 percent in our test was lower than the average for all credit unions, a sign that it's less well prepared for financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of troubled assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

A credit union with large numbers of these types of assets may eventually have to use capital to absorb losses, reducing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, decreasing earnings and elevating the chances of a failure in the future.

EMERALD CREDIT ASSOCIATION exceeded the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings can be retained by the credit union, increasing its capital cushion, or be used to address problematic loans, likely making the credit union more resilient in tough times. Conversely, losses lessen a credit union's ability to do those things.

EMERALD CREDIT ASSOCIATION scored 8 out of a possible 30 on Bankrate's test of earnings, coming in below the national average of 10.11.

EMERALD CREDIT ASSOCIATION had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's beating 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.