Safe and Sound

SMITH & NEPHEW EMPLOYEES

Memphis, TN
5
Star Rating
SMITH & NEPHEW EMPLOYEES is an NCUA-insured credit union founded in 1968 and currently headquartered in Memphis, TN. Regulatory filings show the credit union having assets of $8.1 million, as of December 31, 2017.

Thanks to the efforts of 2 full-time employees, the credit union holds loans and leases worth $2.3 million. SMITH & NEPHEW EMPLOYEES's 1,277 members currently have $6.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SMITH & NEPHEW EMPLOYEES 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 important criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and provides protection for members when a credit union is experiencing financial instability. It follows then that a credit union's level of capital is a useful measurement of its financial resilience. When it comes to safety and soundness, the more capital, the better.

SMITH & NEPHEW EMPLOYEES did better than the national average of 15.65 points on our test to measure capital adequacy, scoring 26 out of a possible 30 points.

SMITH & NEPHEW EMPLOYEES had a capitalization ratio of 26.00 percent in our test, better than the average for all credit unions, suggesting that it's on more solid financial footing than its peers.

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.

Having a large number of these kinds of assets means a credit union could have to use capital to absorb losses, decreasing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, SMITH & NEPHEW EMPLOYEES scored 40 out of a possible 40 points, better than the national average of 38.09 points.

SMITH & NEPHEW EMPLOYEES's ratio of problem 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

How successful a credit union is at earning money has an effect on its long-term survivability. Earnings may be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. However, credit unions that are losing money have less ability to do those things.

SMITH & NEPHEW EMPLOYEES fell short of the national average on Bankrate's earnings test, achieving a score of 4 out of a possible 30.

SMITH & NEPHEW EMPLOYEES had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's running ahead of 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.