Financial Health Rating Award from Depositaccounts

DepositAccounts.com has released its findings rating the healthiest banks and credit unions in the United States for 2019. We’re proud to announce that Neighborhood Credit Union received an "A" rating and has been recognized as one of the healthiest credit unions in the United States. 

Ranging from "A+" to "F", the ratings assigned are based on a calculated health score and each financial institution is graded on several factors that would indicate that they are heading in the right direction. Categories DepositAccounts uses to determine financial health include capitalization, deposit growth, and loan-to-reserve ratios.

The DepositAccounts.com Health Rating

As one of the most comprehensive online publications dedicated to consumer banking and deposit product information, DepositAccounts.com covers every federally insured bank and credit union to track around 275,000 deposit rates. 

Prompted by the global financial crisis in 2008, many people took a second look at the health of their financial institutions. While the FDIC and National Credit Union Administration (NCUA) maintain a watch list of banks and credit unions that may be at risk of failing, these lists are not available to the public but their quarterly raw financial numbers are. DepositAccounts uses this data to evaluate the financial health of over 10,000 banks and credit unions with some of these key factors:

Capitalization is a bank or credit union’s available capital, which is determined by subtracting liability value from their asset value. 

As people continue to put money in a bank or credit union, that growth increases the money available to keep a strong balance sheet. Especially if the total deposits have been increasing over time, this is a high indicator of confidence in the financial institution and its stability.

The Texas Ratio was developed to easily measure the status of a financial institution’s credit troubles, where the higher ratios warn of severe credit problems. The number is determined by comparing the total value of at risk loans (loans that are more than 90 days past due and not backed by the government) to the total value of funds the bank has on hand to cover those loans.

Neighborhood Credit Union’s Financial Health

Our 2019 "A" rating from DepositAccounts establishes Neighborhood CU as one of the healthiest credit unions in America. According to the 2018 Annual Report, the credit union has over 55,000 members, $65 million in deposit growth, and sits at $551 million in member loans - with assets totaling over $715 million.

On the DepositAccounts.com report, Neighborhood CU’s Texas Ratio is in excellent standing at 3.99%, which earns an "A+" in this category. Deposit Growth also received an "A+" rating and an "A" in Capitalization.

Determining your bank or credit union’s financial health is extremely important when choosing where to keep your money, and Neighborhood Credit Union will continue its dedication to achieving financial health. Visit the DepositAccounts.com website for more information on their financial health analysis and history, and view Neighborhood CU’s Health analysis here.