Safe and Sound

NATIONAL EMPLOYEES

Bluefield, WV
4
Star Rating
NATIONAL EMPLOYEES is an NCUA-insured credit union started in 1948 and currently based in BLUEFIELD, WV. The credit union holds assets of $11.0 million, according to December 31, 2017, regulatory filings.

With 4 full-time employees, the credit union currently holds loans and leases worth $5.3 million. Its 3,101 members currently have $9.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NATIONAL EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three key criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of a credit union's financial resilience. It works as a bulwark against losses and affords protection for members during times of financial trouble for the credit union. When it comes to safety and soundness, more capital is preferred.

NATIONAL EMPLOYEES received a score of 14 out of a possible 30 points on our test to measure capital adequacy, failing to reach the national average of 15.65.

NATIONAL EMPLOYEES's capitalization ratio of 14.00 percent in our test was less than the average for all credit unions, a sign that it's on less solid financial footing than its peers.

Asset Quality Score

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

Having a large number of these kinds of assets could eventually require a credit union to use capital to absorb losses, diminishing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, decreasing earnings and elevating the risk of a future failure.

NATIONAL EMPLOYEES scored 40 out of a possible 40 points on Bankrate's asset quality test, exceeding the national average of 38.09.

Troubled assets made up 0.00 percent of NATIONAL EMPLOYEES's total assets in our test, lower than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, potentially making the credit union better able to withstand economic shocks. Losses, on the other hand, reduce a credit union's ability to do those things.

On Bankrate's earnings test, NATIONAL EMPLOYEES scored 8 out of a possible 30, coming in below the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's outperforming 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.