Safe and Sound

HANCOCK SCHOOL EMP.

Weirton, WV
4
Star Rating
Founded in 1972, HANCOCK SCHOOL EMP. is an NCUA-insured credit union headquartered in Weirton, WV. Regulatory filings show the credit union having assets of $19.0 million, as of December 31, 2017.

With 4 full-time employees, the credit union currently holds loans and leases worth $2.1 million. Its 1,529 members currently have $16.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HANCOCK SCHOOL EMP. exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired 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

Capital acts as a cushion against losses and affords 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 stability, capital is essential. When looking at safety and soundness, the more capital, the better.

HANCOCK SCHOOL EMP. received a score of 14 out of a possible 30 points on our test to measure capital adequacy, coming in below the national average of 15.65.

HANCOCK SCHOOL EMP.'s capitalization ratio of 14.00 percent in our test was worse than the average for all credit unions, suggesting that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

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

A credit union with extensive holdings of these kinds of assets could eventually be forced to use capital to cover losses, diminishing 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 interest for the credit union, resulting in lower earnings and potentially more risk of a failure in the future.

HANCOCK SCHOOL EMP. beat out the national average of 38.09 on Bankrate's test of asset quality, 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. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, likely making the credit union better able to withstand financial shocks. Losses, on the other hand, diminish a credit union's ability to do those things.

On Bankrate's test of earnings, HANCOCK SCHOOL EMP. scored 2 out of a possible 30, coming in below the national average of 10.11.

One indication that the credit union is beating 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.