Safe and Sound

N.G.H.

NASHVILLE, TN
2
Star Rating
N.G.H. is a NASHVILLE, TN-based, NCUA-insured credit union dating back to 1959. As of December 31, 2017, the credit union held assets of $6.3 million.

Thanks to the efforts of 4 full-time employees, the credit union holds loans and leases worth $3.8 million. N.G.H.'s 2,531 members currently have $5.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, N.G.H. exhibited a below-average condition, earning 2 out of 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 evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members when a credit union is experiencing financial instability. Therefore, an institution's level of capital is a crucial measurement of its financial resilience. When it comes to safety and soundness, more capital is preferred.

N.G.H. received a score of 2 out of a possible 30 points on our test to measure capital adequacy, coming in below the national average of 15.65.

N.G.H.'s capitalization ratio of 2.00 percent in our test was lower than the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

Having extensive holdings of these types of assets suggests a credit union may have to use capital to absorb losses, decreasing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in depressed earnings and potentially more risk of a future failure.

N.G.H. fell short of the national average of 38.09 on Bankrate's asset quality test, racking up 28 out of a possible 40 points .

A below-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. Earnings may be retained by the credit union, boosting its capital cushion, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's test of earnings, N.G.H. scored 0 out of a possible 30, less than the national average of 10.11.

N.G.H. 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.