Safe and Sound

BELLCO

GREENWOOD VILLA, CO
5
Star Rating
Started in 1936, BELLCO is an NCUA-insured credit union headquartered in GREENWOOD VILLA, CO. The credit union holds $3.95 billion in assets, according to June 30, 2017, regulatory filings.

With 324 full-time employees, the credit union holds loans and leases worth $3.12 billion. BELLCO's 304,615 members currently have $3.14 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, BELLCO exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three key criteria Bankrate used to grade U.S. 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 as protection for members when a credit union is struggling financially. It follows then that a credit union's level of capital is an essential measurement of its financial fortitude. When it comes to safety and soundness, the higher the capital, the better.

BELLCO scored below the national average of 15.26 on our test to measure capital adequacy, receiving a score of 12 out of a possible 30 points.

BELLCO appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 10.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of troubled assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

Having extensive holdings of these kinds of assets could eventually force a credit union to use capital to cover losses, decreasing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in depressed earnings and potentially more risk of a future failure.

BELLCO did better than the national average of 38.15 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

Troubled assets made up 5.00 percent of the credit union's total assets in our test, less than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, likely making the credit union better able to withstand economic trouble. Obviously, credit unions that are losing money are less able to do those things.

BELLCO scored 18 out of a possible 30 on Bankrate's test of earnings, above the national average of 10.31.

One sign that the credit union is outperforming its peers in this area was its earnings ratio of 9.00 percent in our test, better 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.