Safe and Sound

NUCOR EMPLOYEES

FORT PAYNE, AL
4
Star Rating
NUCOR EMPLOYEES is a FORT PAYNE, AL-based, NCUA-insured credit union dating back to 1963. As of December 31, 2017, the credit union had assets of $2.9 million.

NUCOR EMPLOYEES's 352 members currently have $2.2 million in shares with the credit union. With that footprint, the credit union currently holds loans and leases worth $1.3 million.

Overall, Bankrate believes that, as of December 31, 2017, NUCOR EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three major criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of a credit union's financial fortitude. It works as a cushion against losses and as protection for members when a credit union is struggling financially. When it comes to safety and soundness, more capital is better.

On our test to measure capital adequacy, NUCOR EMPLOYEES achieved a score of 30 out of a possible 30 points, exceeding the national average of 15.65.

NUCOR EMPLOYEES's capitalization ratio of 30.00 percent in our test was better than the average for all credit unions, an indication that it's stronger than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the impact of problem assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

Having a large number of these kinds of assets could eventually force a credit union to use capital to absorb losses, shrinking its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, diminishing earnings and elevating the chances of a failure in the future.

NUCOR EMPLOYEES scored 40 out of a possible 40 points on Bankrate's asset quality test, exceeding the national average of 38.09.

A below-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 affects its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, likely making the credit union better able to withstand financial trouble. Conversely, losses reduce a credit union's ability to do those things.

On Bankrate's test of earnings, NUCOR EMPLOYEES scored 0 out of a possible 30, lower than the national average of 10.11.

NUCOR EMPLOYEES had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's outperforming its peers in this area.

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.