Safe and Sound

NEBRASKA ENERGY

COLUMBUS, NE
5
Star Rating
COLUMBUS, NE-based NEBRASKA ENERGY is an NCUA-insured credit union started in 1944. As of December 31, 2017, the credit union held assets of $255.5 million.

With 23 full-time employees, the credit union currently holds loans and leases worth $209.0 million. Its 11,099 members currently have $216.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NEBRASKA ENERGY exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three key criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts 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 a crucial measurement of its financial fortitude. When it comes to safety and soundness, more capital is preferred.

NEBRASKA ENERGY achieved a score of 20 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, above the national average of 15.65.

NEBRASKA ENERGY appears to be stronger than its peers, with a capitalization ratio of 20.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the impact of problem assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having large numbers of these kinds of assets suggests a credit union may eventually have to use capital to absorb losses, decreasing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, decreasing earnings and elevating the chances of a failure in the future.

NEBRASKA ENERGY scored above the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

Troubled assets made up 0.00 percent of NEBRASKA ENERGY's total assets in our test, below 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 has an effect on its long-term survivability. Earnings can be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, potentially making the credit union better prepared to withstand economic shocks. Credit unions that are losing money, however, have less ability to do those things.

NEBRASKA ENERGY scored 14 out of a possible 30 on Bankrate's earnings test, exceeding the national average of 10.11.

One sign that the credit union is doing better than 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.