Safe and Sound

ORLEX GOVERNMENT EMPLOYEES

NEWPORT, VT
3
Star Rating
ORLEX GOVERNMENT EMPLOYEES is a NEWPORT, VT-based, NCUA-insured credit union founded in 1953. Regulatory filings show the credit union having assets of $5.7 million, as of December 31, 2017.

Thanks to the work of 3 full-time employees, the credit union holds loans and leases worth $4.9 million. Its 1,360 members currently have $5.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ORLEX GOVERNMENT EMPLOYEES exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three important criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members during times of economic trouble for the credit union. Therefore, when it comes to measuring an a credit union's financial strength, capital is useful. When looking at safety and soundness, the higher the capital, the better.

ORLEX GOVERNMENT EMPLOYEES received a score of 10 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, lower than the national average of 15.65.

ORLEX GOVERNMENT EMPLOYEES appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 10.00 percent in our test, below the average for all credit unions.

Asset Quality Score

This test is intended to try to understand 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 unpaid loans.

A credit union with a large number of these kinds of assets may eventually be forced to use capital to cover losses, cutting down on its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, pushing down earnings and elevating the risk of a future failure.

ORLEX GOVERNMENT EMPLOYEES scored 36 out of a possible 40 points on Bankrate's test of asset quality, below 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

A credit union's ability to earn money has an effect on its safety and soundness. A credit union can retain its earnings, boosting its capital cushion, or use them to deal with problematic loans, potentially making the credit union more resilient in tough times. Obviously, credit unions that are losing money are less able to do those things.

ORLEX GOVERNMENT EMPLOYEES did below-average on Bankrate's test of earnings, achieving a score of 8 out of a possible 30.

ORLEX GOVERNMENT EMPLOYEES had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's beating 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.