Safe and Sound

LOGAN COUNTY SCHOOL EMPLOYEES

Logan, WV
4
Star Rating
Started in 1985, LOGAN COUNTY SCHOOL EMPLOYEES is an NCUA-insured credit union based in Logan, WV. The credit union holds $1.2 million in assets, according to December 31, 2017, regulatory filings.

The credit union has amassed loans and leases worth $285,422. LOGAN COUNTY SCHOOL EMPLOYEES's 433 members currently have $1.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LOGAN COUNTY SCHOOL EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three key 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 as protection for members when a credit union is experiencing financial trouble. It follows then that a credit union's level of capital is a useful measurement of its financial strength. From a safety and soundness perspective, the higher the capital, the better.

LOGAN COUNTY SCHOOL EMPLOYEES racked up 20 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, beating the national average of 15.65.

LOGAN COUNTY SCHOOL EMPLOYEES had a capitalization ratio of 20.00 percent in our test, higher than the average for all credit unions, a sign that it could be more resilient in a crisis than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as past-due loans.

Having extensive holdings of these types of assets means a credit union may have to use capital to cover losses, shrinking its buffer of equity. 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 increasing the risk of a future failure.

LOGAN COUNTY SCHOOL EMPLOYEES 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, lower than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially 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 earnings test, LOGAN COUNTY SCHOOL EMPLOYEES scored 8 out of a possible 30, less than the national average of 10.11.

One sign that LOGAN COUNTY SCHOOL EMPLOYEES is doing better than 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.