Safe and Sound

SANDIA LABORATORY

Albuquerque, NM
4
Star Rating
SANDIA LABORATORY is an Albuquerque, NM-based, NCUA-insured credit union that opened its doors in 1948. Regulatory filings show the credit union having assets of $2.43 billion, as of June 30, 2017.

With 286 full-time employees, the credit union holds loans and leases worth $1.22 billion. SANDIA LABORATORY's 88,461 members currently have $2.18 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, SANDIA LABORATORY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three key criteria Bankrate used to evaluate 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 instability for the credit union. Therefore, a credit union's level of capital is a useful measurement of its financial fortitude. When it comes to safety and soundness, the higher the capital, the better.

SANDIA LABORATORY received a score of 10 out of a possible 30 points on our test to measure capital adequacy, below the national average of 15.26.

SANDIA LABORATORY appears to be less well prepared for financial trouble 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

This test is intended to estimate how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as past-due mortgages.

Having extensive holdings of these kinds of assets means a credit union may eventually have to use capital to absorb losses, cutting down on its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, diminishing earnings and elevating the risk of a future failure.

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

A below-average ratio of troubled assets of 4.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance affects its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or use them to deal with problematic loans, likely making the credit union more resilient in tough times. Obviously, credit unions that are losing money are less able to do those things.

SANDIA LABORATORY received above-average marks on Bankrate's earnings test, achieving a score of 18 out of a possible 30.

The credit union had an earnings ratio of 8.00 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.