Safe and Sound

NEW CASTLE COUNTY SCHOOL EMP

NEW CASTLE, DE
2
Star Rating
NEW CASTLE, DE-based NEW CASTLE COUNTY SCHOOL EMP is an NCUA-insured credit union founded in 1953. As of December 31, 2017, the credit union held assets of $45.4 million.

Thanks to the efforts of 11 full-time employees, the credit union currently holds loans and leases worth $19.3 million. NEW CASTLE COUNTY SCHOOL EMP's 10,675 members currently have $41.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NEW CASTLE COUNTY SCHOOL EMP exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three important criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial fortitude, capital is valuable. It acts as a bulwark against losses and provides protection for members when a credit union is struggling financially. When it comes to safety and soundness, more capital is better.

NEW CASTLE COUNTY SCHOOL EMP received a score of 6 out of a possible 30 points on our test to measure capital adequacy, falling short of the national average of 15.65.

NEW CASTLE COUNTY SCHOOL EMP appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 6.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of troubled assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with large numbers of these types of assets could eventually have to use capital to absorb losses, diminishing its equity cushion. 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 future failure.

On Bankrate's test of asset quality, NEW CASTLE COUNTY SCHOOL EMP scored 36 out of a possible 40 points, failing to reach the national average of 38.09 points.

The credit union's ratio of troubled assets was 0.00 percent in our test, less than 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. Earnings can be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, likely making the credit union better prepared to withstand economic trouble. However, credit unions that are losing money are less able to do those things.

NEW CASTLE COUNTY SCHOOL EMP scored 2 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.11.

One sign that NEW CASTLE COUNTY SCHOOL EMP 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.