Safe and Sound

INTERNAL REVENUE EMPLOYEES

GREENSBORO, NC
4
Star Rating
INTERNAL REVENUE EMPLOYEES is a GREENSBORO, NC-based, NCUA-insured credit union that opened its doors in 1940. As of December 31, 2017, the credit union held assets of $20.9 million.

Thanks to the efforts of 3 full-time employees, the credit union has amassed loans and leases worth $4.3 million. Its 1,180 members currently have $17.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, INTERNAL REVENUE EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three important criteria Bankrate used to score U.S. 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 affords protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an a credit union's financial strength, capital is important. From a safety and soundness perspective, the more capital, the better.

INTERNAL REVENUE EMPLOYEES exceeded the national average of 15.65 points on our test to measure capital adequacy, achieving a score of 20 out of a possible 30 points.

INTERNAL REVENUE EMPLOYEES had a capitalization ratio of 20.00 percent in our test, better than the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to estimate the effect of problem assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

Having large numbers of these kinds of assets could eventually force a credit union to use capital to absorb losses, reducing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, diminishing earnings and elevating the chances of a failure in the future.

INTERNAL REVENUE EMPLOYEES did better than the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

INTERNAL REVENUE EMPLOYEES's ratio of troubled assets was 0.00 percent in our test, beneath the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. Earnings may be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, potentially making the credit union better prepared to withstand economic shocks. Losses, on the other hand, diminish a credit union's ability to do those things.

INTERNAL REVENUE EMPLOYEES did below-average on Bankrate's earnings test, achieving a score of 6 out of a possible 30.

One indication that INTERNAL REVENUE EMPLOYEES is running ahead of 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.