Safe and Sound

NEBRASKA RURAL COMMUNITY

MORRILL, NE
2
Star Rating
MORRILL, NE-based NEBRASKA RURAL COMMUNITY is an NCUA-insured credit union founded in 2003. The credit union has assets of $2.0 million, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 2 full-time employees, the credit union holds loans and leases worth $1.3 million. NEBRASKA RURAL COMMUNITY's 980 members currently have $1.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NEBRASKA RURAL COMMUNITY exhibited a below-average condition, earning 2 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 score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members during periods of financial trouble for the credit union. It follows then that an institution's level of capital is a key measurement of its financial fortitude. From a safety and soundness perspective, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, NEBRASKA RURAL COMMUNITY received a score of 6 out of a possible 30 points, below the national average of 15.65.

NEBRASKA RURAL COMMUNITY had a capitalization ratio of 6.00 percent in our test, below the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of problem assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with lots of these kinds of assets may eventually have to use capital to absorb losses, decreasing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in lower earnings and potentially more risk of a future failure.

NEBRASKA RURAL COMMUNITY scored 24 out of a possible 40 points on Bankrate's test of asset quality, lower than 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, expanding its capital cushion, or use them to address problematic loans, potentially making the credit union more resilient in tough times. Losses, on the other hand, reduce a credit union's ability to do those things.

NEBRASKA RURAL COMMUNITY beat the national average on Bankrate's test of earnings, achieving a score of 14 out of a possible 30.

One indication that NEBRASKA RURAL COMMUNITY is running ahead of 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.