Safe and Sound

NUCOR EMPLOYEE'S

FLORENCE, SC
5
Star Rating
NUCOR EMPLOYEE'S is a FLORENCE, SC-based, NCUA-insured credit union dating back to 1962. The credit union has $37.4 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 9 full-time employees, the credit union holds loans and leases worth $22.3 million. NUCOR EMPLOYEE'S's 7,013 members currently have $30.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NUCOR EMPLOYEE'S exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union faired on the three key criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and provides protection for members during times of economic instability for the credit union. Therefore, when it comes to measuring an an institution's financial stability, capital is crucial. When looking at safety and soundness, more capital is preferred.

NUCOR EMPLOYEE'S scored 22 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, exceeding the national average of 15.65.

NUCOR EMPLOYEE'S appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 22.00 percent in our test, better 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 troubled assets, such as unpaid loans.

A credit union with extensive holdings of these kinds of assets could eventually be forced to use capital to absorb losses, cutting down on its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, NUCOR EMPLOYEE'S scored 40 out of a possible 40 points, beating the national average of 38.09 points.

The credit union's ratio of problem assets was 0.00 percent 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 earning money has an effect on its safety and soundness. Earnings can be retained by the credit union, increasing its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses reduce a credit union's ability to do those things.

NUCOR EMPLOYEE'S scored 8 out of a possible 30 on Bankrate's earnings test, below the national average of 10.11.

One indication that NUCOR EMPLOYEE'S is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.