Safe and Sound

BECKSTRAND AND ASSOCIATES

Salt Lake City, UT
5
Star Rating
BECKSTRAND AND ASSOCIATES is a Salt Lake City, UT-based, NCUA-insured credit union dating back to 1983. The credit union holds $270,837 in assets, according to December 31, 2017, regulatory filings.

The credit union has amassed loans and leases worth $25,740. Its 21 members currently have $90,839 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BECKSTRAND AND ASSOCIATES exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union faired on the three key criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and as protection for members during times of economic instability for the credit union. Therefore, a credit union's level of capital is a key measurement of its financial resilience. When looking at safety and soundness, the more capital, the better.

On our test to measure capital adequacy, BECKSTRAND AND ASSOCIATES achieved a score of 30 out of a possible 30 points, above the national average of 15.65.

BECKSTRAND AND ASSOCIATES had a capitalization ratio of 30.00 percent in our test, above the average for all credit unions, an indication that it's more well prepared for financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of troubled assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

Having extensive holdings of these types of assets means a credit union may eventually have 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 depressed earnings and potentially more risk of a future failure.

BECKSTRAND AND ASSOCIATES scored 40 out of a possible 40 points on Bankrate's test of asset quality, better than the national average of 38.09.

Earnings score

How successful a credit union is at making money affects its long-term survivability. Earnings may be retained by the credit union, boosting its capital cushion, or be used to address problematic loans, likely making the credit union better able to withstand economic trouble. However, credit unions that are losing money are less able to do those things.

BECKSTRAND AND ASSOCIATES scored 2 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 10.11.

BECKSTRAND AND ASSOCIATES had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, an indication that it's beating 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.