Safe and Sound

NORTH LITTLE ROCK EDUCATORS

NORTH LITTLE RO, AR
2
Star Rating
NORTH LITTLE RO, AR-based NORTH LITTLE ROCK EDUCATORS is an NCUA-insured credit union founded in 1956. Regulatory filings show the credit union having $1.1 million in assets, as of December 31, 2017.

Its 483 members currently have $967,350 in shares with the credit union. With that footprint, the credit union holds loans and leases worth $217,916.

Overall, Bankrate believes that, as of December 31, 2017, NORTH LITTLE ROCK EDUCATORS exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three important criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of a credit union's financial fortitude. It acts as a bulwark against losses and affords protection for members when a credit union is experiencing economic trouble. From a safety and soundness perspective, the more capital, the better.

On our test to measure capital adequacy, NORTH LITTLE ROCK EDUCATORS received a score of 14 out of a possible 30 points, coming in below the national average of 15.65.

NORTH LITTLE ROCK EDUCATORS appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 14.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

This test's purpose is to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as past-due loans.

Having large numbers of these kinds of assets means a credit union could eventually have to use capital to cover losses, decreasing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, reducing earnings and increasing the chances of a failure in the future.

NORTH LITTLE ROCK EDUCATORS finished below the national average of 38.09 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative 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 safety and soundness. Earnings may be retained by the credit union, boosting its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money are less able to do those things.

NORTH LITTLE ROCK EDUCATORS scored 0 out of a possible 30 on Bankrate's test of earnings, failing to reach the national average of 10.11.

NORTH LITTLE ROCK EDUCATORS had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's doing better than its peers in this area.

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.