Safe and Sound

MOUNT VERNON BAPTIST CHURCH

Durham, NC
5
Star Rating
MOUNT VERNON BAPTIST CHURCH is an NCUA-insured credit union started in 1948 and currently based in Durham, NC. As of December 31, 2017, the credit union held assets of $173,875.

MOUNT VERNON BAPTIST CHURCH's 311 members currently have $113,203 in shares with the credit union. With that footprint, the credit union holds loans and leases worth $7,815.

Overall, Bankrate believes that, as of December 31, 2017, MOUNT VERNON BAPTIST CHURCH exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three major criteria Bankrate used to evaluate American credit unions on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of a credit union's financial strength. It works as a buffer against losses and provides protection for members during periods of financial instability for the credit union. From a safety and soundness perspective, more capital is better.

On our test to measure capital adequacy, MOUNT VERNON BAPTIST CHURCH scored 30 out of a possible 30 points, better than the national average of 15.65.

MOUNT VERNON BAPTIST CHURCH had a capitalization ratio of 30.00 percent in our test, higher than the average for all credit unions, suggesting that it's stronger than its peers.

Asset Quality Score

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

Having extensive holdings of these types of assets may eventually force a credit union to use capital to cover losses, reducing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, diminishing earnings and elevating the risk of a failure in the future.

MOUNT VERNON BAPTIST CHURCH scored 40 out of a possible 40 points on Bankrate's asset quality test, beating out the national average of 38.09.

Earnings score

A credit union's ability to earn money has an effect on its long-term survivability. A credit union can retain its earnings, giving a boost to its capital cushion, or put them to work addressing 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.

MOUNT VERNON BAPTIST CHURCH underperformed the average on Bankrate's test of earnings, achieving a score of 2 out of a possible 30.

One sign that MOUNT VERNON BAPTIST CHURCH 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.