Safe and Sound

SELF-HELP

DURHAM, NC
5
Star Rating
SELF-HELP is a DURHAM, NC-based, NCUA-insured credit union that opened its doors in 1983. The credit union holds $894.6 million in assets, according to December 31, 2017, regulatory filings.

With 183 full-time employees, the credit union holds loans and leases worth $643.5 million. Its 68,409 members currently have $750.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SELF-HELP 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 important criteria Bankrate used to evaluate 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 during times of financial trouble for the credit union. Therefore, when it comes to measuring an an institution's financial strength, capital is important. From a safety and soundness perspective, the higher the capital, the better.

SELF-HELP fell short of the national average of 15.65 on our test to measure the adequacy of a credit union's capital, scoring 12 out of a possible 30 points.

SELF-HELP's capitalization ratio of 12.00 percent in our test was lower than the average for all credit unions, a sign that it's weaker than its peers.

Asset Quality Score

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

Having extensive holdings of these kinds of assets may eventually require a credit union to use capital to cover losses, decreasing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in depressed earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, SELF-HELP scored 36 out of a possible 40 points, below the national average of 38.09 points.

SELF-HELP's ratio of problem assets was 0.00 percent in our test, lower than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. Earnings may be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, potentially making the credit union better able to withstand economic trouble. However, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, SELF-HELP scored 22 out of a possible 30, exceeding the national average of 10.11.

SELF-HELP 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.