Safe and Sound

BRONCO

FRANKLIN, VA
2
Star Rating
BRONCO is a FRANKLIN, VA-based, NCUA-insured credit union founded in 1941. As of June 30, 2017, the credit union held assets of $181.9 million.

With 59 full-time employees, the credit union currently holds loans and leases worth $134.9 million. BRONCO's 17,891 members currently have $167.7 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, BRONCO exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three key criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and affords protection for members during times of economic instability for the credit union. Therefore, when it comes to measuring an an institution's financial stability, capital is important. When looking at safety and soundness, the more capital, the better.

On our test to measure capital adequacy, BRONCO received a score of 6 out of a possible 30 points, coming in below the national average of 15.26.

BRONCO appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 8.00 percent in our test, lower 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 reserves set aside to cover loan losses, as well as overall capitalization.

Having lots of these kinds of assets may eventually force a credit union to use capital to absorb 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 money, diminishing earnings and elevating the chances of a failure in the future.

On Bankrate's asset quality test, BRONCO scored 28 out of a possible 40 points, failing to reach the national average of 38.15 points.

A higher-than-average ratio of problem assets of 24.00 percent in our test was a potential cause for concern for BRONCO.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. Earnings may be retained by the credit union, expanding its capital cushion, or be used to deal with problematic loans, potentially making the credit union better able to withstand financial shocks. Conversely, losses lessen a credit union's ability to do those things.

BRONCO fell short of the national average on Bankrate's test of earnings, achieving a score of 10 out of a possible 30.

The credit union had an earnings ratio of 5.00 percent in our test, above the average for all credit unions, suggesting that it's doing better than 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.