Safe and Sound

SOUTH CHARLESTON EMPLOYEES

South Charlesto, WV
5
Star Rating
SOUTH CHARLESTON EMPLOYEES is an NCUA-insured credit union founded in 1965 and currently headquartered in South Charlesto, WV. Regulatory filings show the credit union having $18.1 million in assets, as of December 31, 2017.

Members have $5.3 million on deposit tended by 2 full-time employees. With that footprint, the credit union has amassed loans and leases worth $5.3 million. SOUTH CHARLESTON EMPLOYEES's 1,369 members currently have $10.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SOUTH CHARLESTON EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union faired on the three key 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 works as a bulwark against losses and affords protection for members during periods of financial trouble for the credit union. It follows then that when it comes to measuring an a credit union's financial stability, capital is crucial. From a safety and soundness perspective, the higher the capital, the better.

On our test to measure capital adequacy, SOUTH CHARLESTON EMPLOYEES racked up 30 out of a possible 30 points, beating the national average of 15.65.

SOUTH CHARLESTON EMPLOYEES appears to be stronger than its peers, with a capitalization ratio of 30.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of problem assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with large numbers of these types of assets may eventually have to use capital to cover losses, cutting down on its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in reduced earnings and potentially more risk of a failure in the future.

SOUTH CHARLESTON EMPLOYEES scored 40 out of a possible 40 points on Bankrate's test of asset quality, above the national average of 38.09.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, lower than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. Earnings can be retained by the credit union, boosting its capital cushion, or be used to address problematic loans, likely making the credit union better able to withstand financial shocks. However, credit unions that are losing money have less ability to do those things.

SOUTH CHARLESTON EMPLOYEES received below-average marks on Bankrate's test of earnings, achieving a score of 4 out of a possible 30.

One sign that the credit union is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, higher than 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.