Safe and Sound

NATIONAL GEOGRAPHIC

WASHINGTON, DC
2
Star Rating
NATIONAL GEOGRAPHIC is an NCUA-insured credit union founded in 1980 and currently headquartered in WASHINGTON, DC. Regulatory filings show the credit union having assets of $12.2 million, as of December 31, 2017.

Members have $5.5 million on deposit tended by 3 full-time employees. With that footprint, the credit union has amassed loans and leases worth $5.5 million. NATIONAL GEOGRAPHIC's 1,556 members currently have $10.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NATIONAL GEOGRAPHIC exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three key criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members when a credit union is struggling financially. Therefore, an institution's level of capital is an important measurement of its financial fortitude. When it comes to safety and soundness, the more capital, the better.

On our test to measure capital adequacy, NATIONAL GEOGRAPHIC received a score of 12 out of a possible 30 points, below the national average of 15.65.

NATIONAL GEOGRAPHIC's capitalization ratio of 12.00 percent in our test was lower 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 troubled assets, such as past-due mortgages.

A credit union with large numbers of these types of assets could eventually be forced to use capital to cover losses, decreasing its equity buffer. 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 lower earnings and potentially more risk of a failure in the future.

NATIONAL GEOGRAPHIC scored 36 out of a possible 40 points on Bankrate's asset quality test, coming in below the national average of 38.09.

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 profitability has an effect on its safety and soundness. Earnings may be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, likely making the credit union better able to withstand financial shocks. Conversely, losses lessen a credit union's ability to do those things.

NATIONAL GEOGRAPHIC fell behind the national average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

One sign that the credit union is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.