Safe and Sound

NORTHEAST NEBRASKA

Norfolk, NE
3
Star Rating
NORTHEAST NEBRASKA is an NCUA-insured credit union started in 1962 and currently headquartered in Norfolk, NE. Regulatory filings show the credit union having $9.3 million in assets, as of December 31, 2017.

With 4 full-time employees, the credit union holds loans and leases worth $6.5 million. NORTHEAST NEBRASKA's 2,664 members currently have $8.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NORTHEAST NEBRASKA exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three important criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial resilience, capital is key. It acts as a cushion against losses and affords protection for members when a credit union is experiencing economic trouble. When looking at safety and soundness, more capital is preferred.

NORTHEAST NEBRASKA received a score of 12 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, failing to reach the national average of 15.65.

NORTHEAST NEBRASKA had a capitalization ratio of 12.00 percent in our test, worse than the average for all credit unions, suggesting that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

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

A credit union with large numbers of these kinds of assets could eventually have to use capital to absorb losses, shrinking its equity buffer. 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, reducing earnings and elevating the chances of a future failure.

NORTHEAST NEBRASKA fell below the national average of 38.09 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

NORTHEAST NEBRASKA's ratio of problem assets was 0.00 percent in our test, lower than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance has an effect on its safety and soundness. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, likely making the credit union more resilient in tough times. Credit unions that are losing money, however, have less ability to do those things.

NORTHEAST NEBRASKA did below-average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

NORTHEAST NEBRASKA had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign 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.