Safe and Sound

MCDOWELL COUNTY

Welch, WV
5
Star Rating
MCDOWELL COUNTY is an NCUA-insured credit union founded in 1968 and currently based in Welch, WV. Regulatory filings show the credit union having assets of $42,712, as of December 31, 2017.

The credit union has amassed loans and leases worth $17,300. Its 34 members currently have $27,995 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MCDOWELL COUNTY 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 major criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members during times of economic instability for the credit union. Therefore, when it comes to measuring an a credit union's financial resilience, capital is key. When it comes to safety and soundness, more capital is better.

MCDOWELL COUNTY racked up 30 out of a possible 30 points on our test to measure capital adequacy, above the national average of 15.65.

MCDOWELL COUNTY's capitalization ratio of 30.00 percent in our test was above the average for all credit unions, suggesting that it's on more solid financial footing than its peers.

Asset Quality Score

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

A credit union with extensive holdings of these kinds of assets may eventually be required to use capital to absorb losses, diminishing 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, diminishing earnings and elevating the chances of a future failure.

MCDOWELL COUNTY scored 40 out of a possible 40 points on Bankrate's asset quality test, better than the national average of 38.09.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the credit union better prepared to withstand economic shocks. Conversely, losses diminish a credit union's ability to do those things.

On Bankrate's earnings test, MCDOWELL COUNTY scored 6 out of a possible 30, below the national average of 10.11.

One sign that MCDOWELL COUNTY 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.