Safe and Sound

NORTHERN KENTUCKY EDUCATORS'

Highland Height, KY
4
Star Rating
Founded in 1973, NORTHERN KENTUCKY EDUCATORS' is an NCUA-insured credit union headquartered in Highland Height, KY. The credit union holds assets of $18.5 million, according to December 31, 2017, regulatory filings.

With 4 full-time employees, the credit union holds loans and leases worth $9.2 million. NORTHERN KENTUCKY EDUCATORS''s 2,954 members currently have $16.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NORTHERN KENTUCKY EDUCATORS' exhibited a good condition, earning 4 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 evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members when a credit union is experiencing financial trouble. It follows then that when it comes to measuring an an institution's financial resilience, capital is important. When it comes to safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, NORTHERN KENTUCKY EDUCATORS' received a score of 8 out of a possible 30 points, below the national average of 15.65.

NORTHERN KENTUCKY EDUCATORS''s capitalization ratio of 8.00 percent in our test was less than the average for all credit unions, a sign that it's weaker than its peers.

Asset Quality Score

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

A credit union with extensive holdings of these types of assets could eventually be required to use capital to absorb losses, shrinking its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, reducing earnings and increasing the risk of a failure in the future.

NORTHERN KENTUCKY EDUCATORS' scored 40 out of a possible 40 points on Bankrate's asset quality test, better than the national average of 38.09.

The credit union's ratio of problem assets was 0.00 percent in our test, beneath the national average and potentially indicative 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 more resilient in times of trouble. Credit unions that are losing money, however, are less able to do those things.

NORTHERN KENTUCKY EDUCATORS' scored 10 out of a possible 30 on Bankrate's test of earnings, below the national average of 10.11.

One indication that the credit union is doing better than 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.