Safe and Sound

BEST REWARD

Brook Park, OH
4
Star Rating
BEST REWARD is an NCUA-insured credit union started in 1949 and currently headquartered in Brook Park, OH. The credit union has assets of $147.0 million, according to December 31, 2017, regulatory filings.

With 23 full-time employees, the credit union holds loans and leases worth $33.3 million. BEST REWARD's 13,215 members currently have $99.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BEST REWARD exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial fortitude, capital is crucial. It acts as a buffer against losses and affords protection for members during times of financial trouble for the credit union. When looking at safety and soundness, more capital is better.

BEST REWARD exceeded the national average of 15.65 points on our test to measure capital adequacy, achieving a score of 16 out of a possible 30 points.

BEST REWARD's capitalization ratio of 16.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

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

Having lots of these types of assets may eventually require a credit union to use capital to cover losses, reducing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in lower earnings and potentially more risk of a future failure.

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

A below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability affects its long-term survivability. Earnings can be retained by the credit union, boosting its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money are less able to do those things.

BEST REWARD scored 4 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 10.11.

BEST REWARD had an earnings ratio of 0.00 percent in our test, above 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.