Safe and Sound

ARKANSAS HEALTH CENTER

BENTON, AR
4
Star Rating
BENTON, AR-based ARKANSAS HEALTH CENTER is an NCUA-insured credit union founded in 1953. As of December 31, 2017, the credit union held assets of $7.1 million.

With 3 full-time employees, the credit union has amassed loans and leases worth $5.0 million. Its 1,384 members currently have $6.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ARKANSAS HEALTH CENTER exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three important criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

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

ARKANSAS HEALTH CENTER scored 16 out of a possible 30 points on our test to measure capital adequacy, above the national average of 15.65.

ARKANSAS HEALTH CENTER had a capitalization ratio of 16.00 percent in our test, equal to the average for all credit unions, suggesting that it's right in line with its peers.

Asset Quality Score

In this test, Bankrate tries to determine the impact of problem assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.

A credit union with extensive holdings of these types of assets may eventually have to use capital to cover losses, decreasing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, pushing down earnings and increasing the risk of a failure in the future.

ARKANSAS HEALTH CENTER scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating the national average of 38.09.

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses lessen a credit union's ability to do those things.

ARKANSAS HEALTH CENTER did below-average on Bankrate's earnings test, achieving a score of 10 out of a possible 30.

One sign that the credit union is doing better than its peers in this area was its earnings ratio of 0.00 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.