Safe and Sound

NEIGHBORS

Saint Louis, MO
5
Star Rating
Saint Louis, MO-based NEIGHBORS is an NCUA-insured credit union founded in 1928. The credit union holds $353.4 million in assets, according to December 31, 2017, regulatory filings.

Members have $239.6 million on deposit tended by 150 full-time employees. With that footprint, the credit union currently holds loans and leases worth $239.6 million. Its 47,710 members currently have $274.0 million in shares with the credit union.

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

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members during times of financial trouble for the credit union. It follows then that when it comes to measuring an an institution's financial fortitude, capital is important. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, NEIGHBORS achieved a score of 22 out of a possible 30 points, above the national average of 15.65.

NEIGHBORS had a capitalization ratio of 22.00 percent in our test, better than the average for all credit unions, a sign that it's stronger than its peers.

Asset Quality Score

This test's purpose is 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 unpaid loans.

A credit union with extensive holdings of these kinds of assets could eventually be required to use capital to absorb losses, shrinking 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, pushing down earnings and increasing the chances of a failure in the future.

NEIGHBORS exceeded the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

Troubled assets made up 0.00 percent of NEIGHBORS'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 earning money has an effect on its long-term survivability. A credit union can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better able to withstand economic trouble. However, credit unions that are losing money are less able to do those things.

NEIGHBORS did above-average on Bankrate's earnings test, achieving a score of 12 out of a possible 30.

One indication that the credit union is beating 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.