Safe and Sound

BAPTIST HEALTH

Little Rock, AR
5
Star Rating
BAPTIST HEALTH is an NCUA-insured credit union started in 1959 and currently headquartered in Little Rock, AR. The credit union holds assets of $29.8 million, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 9 full-time employees, the credit union has amassed loans and leases worth $16.7 million. BAPTIST HEALTH's 6,997 members currently have $24.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BAPTIST HEALTH exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and provides protection for members during periods of economic instability for the credit union. It follows then that when it comes to measuring an a credit union's financial resilience, capital is valuable. From a safety and soundness perspective, more capital is preferred.

BAPTIST HEALTH racked up 24 out of a possible 30 points on our test to measure capital adequacy, better than the national average of 15.65.

BAPTIST HEALTH appears to be on more solid financial footing than its peers, with a capitalization ratio of 24.00 percent in our test, higher than the average for all credit unions.

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 lots of these kinds of assets means a credit union could have to use capital to absorb 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 interest for the credit union, pushing down earnings and elevating the risk of a future failure.

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

Troubled assets made up 0.00 percent of BAPTIST HEALTH's total assets in our test, beneath the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. However, credit unions that are losing money have less ability to do those things.

BAPTIST HEALTH underperformed the average on Bankrate's earnings test, achieving a score of 10 out of a possible 30.

BAPTIST HEALTH had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's running ahead of 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.