Safe and Sound

MONTGOMERY COUNTY EMPLOYEES

GERMANTOWN, MD
4
Star Rating
Founded in 1968, MONTGOMERY COUNTY EMPLOYEES is an NCUA-insured credit union headquartered in GERMANTOWN, MD. Regulatory filings show the credit union having $139.2 million in assets, as of December 31, 2017.

Members have $103.1 million on deposit tended by 29 full-time employees. With that footprint, the credit union has amassed loans and leases worth $103.1 million. MONTGOMERY COUNTY EMPLOYEES's 14,130 members currently have $121.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MONTGOMERY COUNTY EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three important criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of an institution's financial resilience. It acts as a bulwark against losses and as protection for members when a credit union is experiencing financial trouble. When it comes to safety and soundness, the more capital, the better.

On our test to measure capital adequacy, MONTGOMERY COUNTY EMPLOYEES received a score of 8 out of a possible 30 points, less than the national average of 15.65.

MONTGOMERY COUNTY EMPLOYEES's capitalization ratio of 8.00 percent in our test was below the average for all credit unions, an indication that it's less well prepared for financial trouble than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as past-due mortgages.

A credit union with lots of these kinds of assets may eventually be required to use capital to cover losses, diminishing 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, resulting in lower earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, MONTGOMERY COUNTY EMPLOYEES scored 36 out of a possible 40 points, less than the national average of 38.09 points.

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance has an effect on its safety and soundness. A credit union can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, likely making the credit union better prepared to withstand financial trouble. However, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, MONTGOMERY COUNTY EMPLOYEES scored 16 out of a possible 30, better than the national average of 10.11.

One sign that MONTGOMERY COUNTY EMPLOYEES is beating 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.