Safe and Sound

MERCER COUNTY W VA TEACHERS

Bluefield, WV
5
Star Rating
Bluefield, WV-based MERCER COUNTY W VA TEACHERS is an NCUA-insured credit union founded in 1954. Regulatory filings show the credit union having assets of $9.0 million, as of December 31, 2017.

With 4 full-time employees, the credit union has amassed loans and leases worth $7.9 million. Its 1,875 members currently have $8.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MERCER COUNTY W VA TEACHERS exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union did on the three major criteria Bankrate used to grade U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of an institution's financial fortitude. It works as a cushion against losses and affords protection for members when a credit union is struggling financially. When it comes to safety and soundness, more capital is preferred.

MERCER COUNTY W VA TEACHERS received a score of 14 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, lower than the national average of 15.65.

MERCER COUNTY W VA TEACHERS appears to be weaker than its peers in this area, with a capitalization ratio of 14.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

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

Having extensive holdings of these types of assets may eventually force a credit union to use capital to cover 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 reduced earnings and potentially more risk of a future failure.

MERCER COUNTY W VA TEACHERS came in below the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

MERCER COUNTY W VA TEACHERS's ratio of problem assets was 0.00 percent in our test, lower than the national average and suggestive of greater financial strength than 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, giving a boost to its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better able to withstand economic trouble. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, MERCER COUNTY W VA TEACHERS scored 24 out of a possible 30, above the national average of 10.11.

MERCER COUNTY W VA TEACHERS had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, an indication that it's doing better than 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.