Safe and Sound

NATURAL RESOURCES CONSERVATION SERV

Fort Worth, TX
3
Star Rating
NATURAL RESOURCES CONSERVATION SERV is an NCUA-insured credit union started in 1937 and currently headquartered in Fort Worth, TX. As of December 31, 2017, the credit union had assets of $10.4 million.

Thanks to the efforts of 3 full-time employees, the credit union has amassed loans and leases worth $5.0 million. NATURAL RESOURCES CONSERVATION SERV's 1,039 members currently have $9.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NATURAL RESOURCES CONSERVATION SERV exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a breakdown of 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 acts as a cushion against losses and affords protection for members during times of economic instability for the credit union. Therefore, when it comes to measuring an a credit union's financial stability, capital is essential. From a safety and soundness perspective, more capital is better.

NATURAL RESOURCES CONSERVATION SERV fell below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, achieving a score of 14 out of a possible 30 points.

NATURAL RESOURCES CONSERVATION SERV had a capitalization ratio of 14.00 percent in our test, lower than the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

Bankrate uses this test to estimate the impact of problem assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.

Having extensive holdings of these types of assets may eventually require a credit union to use capital to cover losses, cutting down on its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, diminishing earnings and increasing the chances of a future failure.

NATURAL RESOURCES CONSERVATION SERV scored 40 out of a possible 40 points on Bankrate's asset quality test, beating out the national average of 38.09.

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than 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, giving a boost to its capital buffer, or use them to deal with problematic loans, likely making the credit union more resilient in tough times. However, credit unions that are losing money are less able to do those things.

NATURAL RESOURCES CONSERVATION SERV scored 0 out of a possible 30 on Bankrate's earnings test, lower than the national average of 10.11.

NATURAL RESOURCES CONSERVATION SERV had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication 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.