Safe and Sound

NAVY ARMY COMMUNITY

CORPUS CHRISTI, TX
4
Star Rating
NAVY ARMY COMMUNITY is an NCUA-insured credit union founded in 1955 and currently based in CORPUS CHRISTI, TX. As of June 30, 2017, the credit union had assets of $2.64 billion.

With 423 full-time employees, the credit union currently holds loans and leases worth $2.27 billion. Its 155,863 members currently have $2.36 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, NAVY ARMY COMMUNITY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and as protection for members during times of financial trouble for the credit union. It follows then that when it comes to measuring an an institution's financial strength, capital is key. When looking at safety and soundness, the more capital, the better.

On our test to measure capital adequacy, NAVY ARMY COMMUNITY received a score of 12 out of a possible 30 points, lower than the national average of 15.26.

NAVY ARMY COMMUNITY had a capitalization ratio of 10.00 percent in our test, below the average for all credit unions, an indication that it's on less solid financial footing than its peers.

Asset Quality Score

Bankrate uses this test to estimate the impact of troubled assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having large numbers of these kinds of assets suggests a credit union could have to use capital to cover losses, diminishing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, decreasing earnings and increasing the chances of a failure in the future.

NAVY ARMY COMMUNITY scored 36 out of a possible 40 points on Bankrate's asset quality test, less than the national average of 38.15.

A higher-than-average ratio of problem assets of 8.00 percent in our test was a potential area of concern for NAVY ARMY COMMUNITY.

Earnings score

A credit union's profitability affects its safety and soundness. Earnings may be retained by the credit union, boosting its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in tough times. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's earnings test, NAVY ARMY COMMUNITY scored 16 out of a possible 30, above the national average of 10.31.

NAVY ARMY COMMUNITY had an earnings ratio of 7.00 percent in our test, higher than the average for all credit unions, an indication 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.