Safe and Sound

NORTH CAROLINA COMMUNITY

GOLDSBORO, NC
3
Star Rating
Founded in 1957, NORTH CAROLINA COMMUNITY is an NCUA-insured credit union headquartered in GOLDSBORO, NC. As of December 31, 2017, the credit union held assets of $72.2 million.

Thanks to the efforts of 23 full-time employees, the credit union currently holds loans and leases worth $28.8 million. Its 6,971 members currently have $64.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NORTH CAROLINA COMMUNITY exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three major criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is crucial. It works as a cushion against losses and provides protection for members when a credit union is struggling financially. When it comes to safety and soundness, more capital is preferred.

NORTH CAROLINA COMMUNITY scored below the national average of 15.65 on our test to measure capital adequacy, racking up 10 out of a possible 30 points.

NORTH CAROLINA COMMUNITY had a capitalization ratio of 10.00 percent in our test, lower than the average for all credit unions, an indication that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of troubled assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.

A credit union with lots of these kinds of assets could eventually have to use capital to absorb losses, reducing its cushion of equity. 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, resulting in depressed earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, NORTH CAROLINA COMMUNITY scored 32 out of a possible 40 points, failing to reach the national average of 38.09 points.

The credit union's ratio of problem assets was 0.00 percent in our test, below the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance has an effect on its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or use them to address problematic loans, likely making the credit union better prepared to withstand financial trouble. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's earnings test, NORTH CAROLINA COMMUNITY scored 6 out of a possible 30, coming in below the national average of 10.11.

One sign that NORTH CAROLINA COMMUNITY is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.