Safe and Sound

QUESTA

Questa, NM
5
Star Rating
Questa, NM-based QUESTA is an NCUA-insured credit union founded in 1959. As of June 30, 2017, the credit union had assets of $8.6 million.

With 3 full-time employees, the credit union holds loans and leases worth $5.3 million. QUESTA's 1,213 members currently have $6.3 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, QUESTA exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three important criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of a credit union's financial fortitude. It works as a bulwark against losses and provides protection for members when a credit union is experiencing economic instability. When looking at safety and soundness, the higher the capital, the better.

QUESTA racked up 30 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, exceeding the national average of 15.26.

QUESTA appears to be more resilient than its peers, with a capitalization ratio of 24.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

This test is intended to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as unpaid mortgages.

A credit union with a large number of these kinds of assets may eventually be forced to use capital to cover losses, decreasing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, QUESTA scored 40 out of a possible 40 points, beating the national average of 38.15 points.

Earnings score

A credit union's profitability has an effect on its safety and soundness. Earnings can be retained by the credit union, giving a boost to its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. Losses, on the other hand, diminish a credit union's ability to do those things.

QUESTA did above-average on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.

One sign that QUESTA is beating its peers in this area was its earnings ratio of 8.00 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.