Safe and Sound

NRS COMMUNITY DEVELOPMENT

BIRMINGHAM, AL
5
Star Rating
NRS COMMUNITY DEVELOPMENT is a BIRMINGHAM, AL-based, NCUA-insured credit union dating back to 1996. The credit union has assets of $1.4 million, according to December 31, 2017, regulatory filings.

The credit union holds loans and leases worth $1.0 million. Its 385 members currently have $395,072 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NRS COMMUNITY DEVELOPMENT exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three major criteria Bankrate used to score U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of an institution's financial fortitude. It works as a bulwark against losses and as protection for members when a credit union is experiencing financial instability. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, NRS COMMUNITY DEVELOPMENT received a score of 10 out of a possible 30 points, falling short of the national average of 15.65.

NRS COMMUNITY DEVELOPMENT appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 10.00 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 loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid mortgages.

Having lots of these types of assets may eventually require a credit union to use capital to absorb losses, diminishing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in depressed earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, NRS COMMUNITY DEVELOPMENT scored 36 out of a possible 40 points, falling short of the national average of 38.09 points.

Troubled assets made up 0.00 percent of NRS COMMUNITY DEVELOPMENT's total assets in our test, lower than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or use them to address problematic loans, potentially making the credit union better able to withstand economic shocks. Obviously, credit unions that are losing money are less able to do those things.

NRS COMMUNITY DEVELOPMENT scored 28 out of a possible 30 on Bankrate's earnings test, exceeding the national average of 10.11.

One sign that NRS COMMUNITY DEVELOPMENT 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.