Safe and Sound

HUNTINGTON C & O RAILWAY EMPLOYEES

Huntington, WV
2
Star Rating
HUNTINGTON C & O RAILWAY EMPLOYEES is a Huntington, WV-based, NCUA-insured credit union started in 1934. The credit union has $33.7 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the work of 10 full-time employees, the credit union holds loans and leases worth $30.5 million. HUNTINGTON C & O RAILWAY EMPLOYEES's 6,013 members currently have $28.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HUNTINGTON C & O RAILWAY EMPLOYEES exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three important criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and provides protection for members when a credit union is experiencing economic trouble. It follows then that a credit union's level of capital is a key measurement of its financial fortitude. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, HUNTINGTON C & O RAILWAY EMPLOYEES scored 16 out of a possible 30 points, exceeding the national average of 15.65.

HUNTINGTON C & O RAILWAY EMPLOYEES'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 determine the impact of problem assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with large numbers of these kinds of assets could eventually be required to use capital to cover losses, decreasing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in depressed earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, HUNTINGTON C & O RAILWAY EMPLOYEES scored 24 out of a possible 40 points, falling short of the national average of 38.09 points.

HUNTINGTON C & O RAILWAY EMPLOYEES's ratio of problem assets was 0.00 percent in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. Earnings may be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, likely making the credit union better prepared to withstand financial shocks. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, HUNTINGTON C & O RAILWAY EMPLOYEES scored 0 out of a possible 30, falling short of the national average of 10.11.

HUNTINGTON C & O RAILWAY EMPLOYEES 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.