Safe and Sound

NORTHERN STAR CREDIT UNION, INC.

Portsmouth, VA
3
Star Rating
NORTHERN STAR CREDIT UNION, INC. is a Portsmouth, VA-based, NCUA-insured credit union that opened its doors in 1929. Regulatory filings show the credit union having assets of $85.2 million, as of December 31, 2017.

With 28 full-time employees, the credit union holds loans and leases worth $42.6 million. NORTHERN STAR CREDIT UNION, INC.'s 9,570 members currently have $70.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NORTHERN STAR CREDIT UNION, INC. exhibited a generally satisfactory condition, earning 3 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 grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial resilience, capital is important. It acts as a cushion 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.

NORTHERN STAR CREDIT UNION, INC. beat out the national average of 15.65 points on our test to measure capital adequacy, racking up 16 out of a possible 30 points.

NORTHERN STAR CREDIT UNION, INC. had a capitalization ratio of 16.00 percent in our test, the same as the average for all credit unions, suggesting that it's running neck and neck with its peers.

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 troubled assets, such as unpaid mortgages.

Having a large number of these types of assets means a credit union may eventually have to use capital to absorb losses, reducing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, NORTHERN STAR CREDIT UNION, INC. scored 32 out of a possible 40 points, lower than the national average of 38.09 points.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, less than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in tough times. However, credit unions that are losing money are less able to do those things.

NORTHERN STAR CREDIT UNION, INC. fell behind the national average on Bankrate's earnings test, achieving a score of 6 out of a possible 30.

One indication that NORTHERN STAR CREDIT UNION, INC. is beating 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.