Safe and Sound

BELEN RAILWAY EMPLOYEES

BELEN, NM
5
Star Rating
Founded in 1955, BELEN RAILWAY EMPLOYEES is an NCUA-insured credit union based in BELEN, NM. Regulatory filings show the credit union having $30.6 million in assets, as of December 31, 2017.

Members have $19.5 million on deposit tended by 7 full-time employees. With that footprint, the credit union currently holds loans and leases worth $19.5 million. Its 2,075 members currently have $26.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BELEN RAILWAY EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's 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?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and affords protection for members when a credit union is struggling financially. It follows then that an institution's level of capital is a valuable measurement of its financial strength. From a safety and soundness perspective, more capital is better.

BELEN RAILWAY EMPLOYEES exceeded the national average of 15.65 points on our test to measure capital adequacy, racking up 18 out of a possible 30 points.

BELEN RAILWAY EMPLOYEES appears to be stronger than its peers, with a capitalization ratio of 18.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

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

Having a large number of these kinds of assets means a credit union may have to use capital to absorb losses, decreasing its cushion of equity. 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, diminishing earnings and elevating the chances of a future failure.

BELEN RAILWAY EMPLOYEES did better than the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

Troubled assets made up 0.00 percent of BELEN RAILWAY EMPLOYEES's total assets in our test, beneath the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand financial shocks. Conversely, losses take away from a credit union's ability to do those things.

On Bankrate's earnings test, BELEN RAILWAY EMPLOYEES scored 18 out of a possible 30, above the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign 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.