Safe and Sound

GREENSBORO MUNICIPAL

GREENSBORO, NC
4
Star Rating
Started in 1937, GREENSBORO MUNICIPAL is an NCUA-insured credit union headquartered in GREENSBORO, NC. The credit union holds assets of $51.3 million, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 15 full-time employees, the credit union currently holds loans and leases worth $39.9 million. GREENSBORO MUNICIPAL's 5,618 members currently have $44.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, GREENSBORO MUNICIPAL 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 score American 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 crucial. It acts as a bulwark against losses and provides protection for members during times of economic trouble for the credit union. From a safety and soundness perspective, the more capital, the better.

On our test to measure capital adequacy, GREENSBORO MUNICIPAL received a score of 14 out of a possible 30 points, lower than the national average of 15.65.

GREENSBORO MUNICIPAL appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 14.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to estimate the impact of troubled assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

A credit union with large numbers of these types of assets could eventually have to use capital to absorb losses, reducing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, reducing earnings and increasing the risk of a future failure.

GREENSBORO MUNICIPAL scored 36 out of a possible 40 points on Bankrate's asset quality test, less than the national average of 38.09.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, below the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. Earnings can be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. Conversely, losses lessen a credit union's ability to do those things.

On Bankrate's test of earnings, GREENSBORO MUNICIPAL scored 14 out of a possible 30, beating the national average of 10.11.

GREENSBORO MUNICIPAL had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's running ahead of 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.