Safe and Sound

INLAND MOTOR EMPLOYEES

Radford, VA
5
Star Rating
INLAND MOTOR EMPLOYEES is an NCUA-insured credit union founded in 1962 and currently based in Radford, VA. Regulatory filings show the credit union having assets of $2.1 million, as of December 31, 2017.

Its 574 members currently have $1.7 million in shares with the credit union. With that footprint, the credit union currently holds loans and leases worth $878,196.

Overall, Bankrate believes that, as of December 31, 2017, INLAND MOTOR EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired 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

When it comes to measuring a credit union's financial resilience, capital is valuable. It acts as a buffer against losses and as protection for members when a credit union is experiencing financial instability. From a safety and soundness perspective, more capital is preferred.

INLAND MOTOR EMPLOYEES beat out the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, racking up 28 out of a possible 30 points.

INLAND MOTOR EMPLOYEES had a capitalization ratio of 28.00 percent in our test, better than the average for all credit unions, suggesting that it could be more resilient in a crisis than its peers.

Asset Quality Score

Bankrate uses this test to estimate the impact of troubled 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 lots of these types of assets could eventually be required to use capital to cover losses, decreasing its cushion of equity. 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 lower earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, INLAND MOTOR EMPLOYEES scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

INLAND MOTOR 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

How successful a credit union is at earning money affects its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better able to withstand financial trouble. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's earnings test, INLAND MOTOR EMPLOYEES scored 2 out of a possible 30, failing to reach the national average of 10.11.

One indication that INLAND MOTOR EMPLOYEES is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.