Safe and Sound

RALEIGH CO. EDUCATORS

Beckley, WV
5
Star Rating
Started in 1980, RALEIGH CO. EDUCATORS is an NCUA-insured credit union based in BECKLEY, WV. As of December 31, 2017, the credit union had assets of $22.2 million.

Members have $7.4 million on deposit tended by 5 full-time employees. With that footprint, the credit union has amassed loans and leases worth $7.4 million. Its 2,332 members currently have $17.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, RALEIGH CO. EDUCATORS exhibited a superior condition, earning a full 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 grade American 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 buffer against losses and affords protection for members when a credit union is experiencing economic trouble. It follows then that an institution's level of capital is a key measurement of its financial strength. When it comes to safety and soundness, the more capital, the better.

RALEIGH CO. EDUCATORS exceeded the national average of 15.65 points on our test to measure capital adequacy, racking up 30 out of a possible 30 points.

RALEIGH CO. EDUCATORS's capitalization ratio of 30.00 percent in our test was higher than the average for all credit unions, an indication that it's on more solid financial footing than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid mortgages.

Having extensive holdings of these types of assets may eventually force a credit union to use capital to cover losses, reducing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in depressed earnings and potentially more risk of a failure in the future.

RALEIGH CO. EDUCATORS beat out the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

RALEIGH CO. EDUCATORS's ratio of problem assets was 0.00 percent in our test, less than the national average and 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 long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, likely making the credit union better prepared to withstand economic trouble. However, credit unions that are losing money have less ability to do those things.

RALEIGH CO. EDUCATORS scored 14 out of a possible 30 on Bankrate's test of earnings, beating the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication 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.