Safe and Sound

NOTEWORTHY

CLEVELAND, OH
4
Star Rating
Founded in 1960, NOTEWORTHY is an NCUA-insured credit union headquartered in CLEVELAND, OH. As of December 31, 2017, the credit union had assets of $3.2 million.

With 2 full-time employees, the credit union currently holds loans and leases worth $3.0 million. Its 647 members currently have $1.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NOTEWORTHY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and affords protection for members when a credit union is struggling financially. It follows then that an institution's level of capital is a useful measurement of its financial fortitude. When it comes to safety and soundness, the higher the capital, the better.

NOTEWORTHY finished below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, receiving a score of 8 out of a possible 30 points.

NOTEWORTHY appears to be weaker than its peers in this area, with a capitalization ratio of 8.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

This test is intended to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as past-due mortgages.

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

NOTEWORTHY finished below the national average of 38.09 on Bankrate's test of asset quality, racking up 32 out of a possible 40 points .

A lower-than-average ratio of troubled 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 earning money has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or use them to address problematic loans, likely making the credit union better able to withstand financial shocks. Losses, on the other hand, reduce a credit union's ability to do those things.

NOTEWORTHY did above-average on Bankrate's earnings test, achieving a score of 20 out of a possible 30.

One indication that NOTEWORTHY is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, better than 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.