Safe and Sound

ARTESIA

Artesia, NM
5
Star Rating
Started in 1955, ARTESIA is an NCUA-insured credit union based in Artesia, NM. The credit union has assets of $97.1 million, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 17 full-time employees, the credit union currently holds loans and leases worth $65.4 million. ARTESIA's 7,356 members currently have $80.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ARTESIA exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three important criteria Bankrate used to score 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 an institution's financial strength. It works as a bulwark against losses and affords protection for members when a credit union is experiencing economic instability. When looking at safety and soundness, the higher the capital, the better.

ARTESIA exceeded the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, receiving a score of 20 out of a possible 30 points.

ARTESIA had a capitalization ratio of 20.00 percent in our test, above the average for all credit unions, a sign that it could be more resilient in a crisis than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid loans.

Having large numbers of these types of assets means a credit union could have to use capital to absorb losses, cutting down on its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, diminishing earnings and elevating the chances of a future failure.

ARTESIA beat out the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

ARTESIA's ratio of troubled assets was 0.00 percent in our test, lower than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money affects its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses take away from a credit union's ability to do those things.

ARTESIA scored 18 out of a possible 30 on Bankrate's earnings test, beating out the national average of 10.11.

One indication that ARTESIA is running ahead of 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.