Safe and Sound

SHAW UNIVERSITY

RALEIGH, NC
4
Star Rating
Founded in 1969, SHAW UNIVERSITY is an NCUA-insured credit union headquartered in RALEIGH, NC. As of December 31, 2017, the credit union had assets of $505,653.

The credit union holds loans and leases worth $228,720. Its 139 members currently have $373,945 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SHAW UNIVERSITY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three important criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for members when a credit union is experiencing financial instability. Therefore, when it comes to measuring an an institution's financial resilience, capital is valuable. From a safety and soundness perspective, more capital is better.

SHAW UNIVERSITY exceeded the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, achieving a score of 30 out of a possible 30 points.

SHAW UNIVERSITY appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 30.00 percent in our test, higher 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 problem assets, such as unpaid loans.

A credit union with a large number of these types of assets could eventually be forced to use capital to cover losses, shrinking its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, decreasing earnings and elevating the chances of a failure in the future.

On Bankrate's test of asset quality, SHAW UNIVERSITY scored 36 out of a possible 40 points, failing to reach the national average of 38.09 points.

SHAW UNIVERSITY's ratio of troubled assets was 0.00 percent in our test, below the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money affects its long-term survivability. Earnings can be retained by the credit union, giving a boost to its capital cushion, or be used to address problematic loans, potentially making the credit union better prepared to withstand financial shocks. Losses, on the other hand, diminish a credit union's ability to do those things.

SHAW UNIVERSITY scored 0 out of a possible 30 on Bankrate's earnings test, below the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign 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.