Safe and Sound

MEMBERSOWN

LINCOLN, NE
3
Star Rating
Founded in 1984, MEMBERSOWN is an NCUA-insured credit union headquartered in LINCOLN, NE. Regulatory filings show the credit union having assets of $100.0 million, as of December 31, 2017.

Members have $41.6 million on deposit tended by 22 full-time employees. With that footprint, the credit union currently holds loans and leases worth $41.6 million. Its 8,821 members currently have $91.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MEMBERSOWN exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major 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 acts as a cushion against losses and as protection for members during periods of economic instability for the credit union. It follows then that a credit union's level of capital is a crucial measurement of its financial fortitude. When it comes to safety and soundness, more capital is better.

MEMBERSOWN fell below the national average of 15.65 on our test to measure capital adequacy, achieving a score of 8 out of a possible 30 points.

MEMBERSOWN had a capitalization ratio of 8.00 percent in our test, lower than the average for all credit unions, an indication that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of troubled assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with extensive holdings of these kinds of assets could eventually be forced to use capital to absorb losses, cutting down on its buffer 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 diminished earnings and potentially more risk of a failure in the future.

MEMBERSOWN scored 40 out of a possible 40 points on Bankrate's test of asset quality, above 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 superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. A credit union can retain its earnings, increasing its capital cushion, or use them to deal with problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, diminish a credit union's ability to do those things.

MEMBERSOWN scored 6 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign 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.