Safe and Sound

BEREA

BROOKLYN, NY
3
Star Rating
Founded in 1982, BEREA is an NCUA-insured credit union headquartered in BROOKLYN, NY. As of December 31, 2017, the credit union held assets of $106,357.

The credit union has amassed loans and leases worth $15,111. BEREA's 295 members currently have $90,805 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BEREA exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three key criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and provides protection for members when a credit union is experiencing economic instability. It follows then that when it comes to measuring an an institution's financial fortitude, capital is key. When it comes to safety and soundness, the more capital, the better.

BEREA racked up 20 out of a possible 30 points on our test to measure capital adequacy, beating the national average of 15.65.

BEREA appears to be on more solid financial footing than its peers, with a capitalization ratio of 20.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to estimate the effect of problem assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having large numbers of these types of assets suggests a credit union could 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 no longer earning interest for the credit union, resulting in depressed earnings and potentially more risk of a failure in the future.

BEREA scored 40 out of a possible 40 points on Bankrate's test of asset quality, exceeding the national average of 38.09.

Earnings score

A credit union's ability to earn money affects its long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or use them to address problematic loans, likely making the credit union better prepared to withstand financial shocks. Losses, on the other hand, reduce a credit union's ability to do those things.

BEREA scored 0 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 10.11.

One sign that BEREA 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.