Safe and Sound

SHELBY COUNTY

MEMPHIS, TN
5
Star Rating
Started in 1961, SHELBY COUNTY is an NCUA-insured credit union headquartered in Memphis, TN. As of December 31, 2017, the credit union held assets of $61.2 million.

Thanks to the efforts of 23 full-time employees, the credit union holds loans and leases worth $28.5 million. SHELBY COUNTY's 10,524 members currently have $51.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SHELBY COUNTY exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial resilience, capital is important. It works as a cushion against losses and provides protection for members during times of financial instability for the credit union. When it comes to safety and soundness, the higher the capital, the better.

SHELBY COUNTY did better than the national average of 15.65 points on our test to measure capital adequacy, achieving a score of 22 out of a possible 30 points.

SHELBY COUNTY's capitalization ratio of 22.00 percent in our test was better than the average for all credit unions, suggesting that it's more well prepared for financial trouble 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.

A credit union with extensive holdings of these kinds of assets may eventually have to use capital to cover losses, diminishing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in reduced earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, SHELBY COUNTY scored 40 out of a possible 40 points, better than the national average of 38.09 points.

Troubled assets made up 0.00 percent of SHELBY COUNTY's total assets in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. Earnings may be retained by the credit union, expanding its capital cushion, or be used to deal with problematic loans, likely making the credit union better prepared to withstand financial trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

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

One sign that SHELBY COUNTY is beating its peers in this area was its earnings ratio of 0.00 percent in our test, above the average for all credit unions.

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.