Safe and Sound

BIG SPRING EDUCATION EMPLOYEES

BIG SPRING, TX
5
Star Rating
BIG SPRING EDUCATION EMPLOYEES is an NCUA-insured credit union founded in 1955 and currently headquartered in BIG SPRING, TX. The credit union holds $47.1 million in assets, according to December 31, 2017, regulatory filings.

With 13 full-time employees, the credit union has amassed loans and leases worth $18.1 million. BIG SPRING EDUCATION EMPLOYEES's 4,362 members currently have $40.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BIG SPRING EDUCATION 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 key 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 during times of economic trouble for the credit union. Therefore, when it comes to measuring an an institution's financial stability, capital is key. When looking at safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, BIG SPRING EDUCATION EMPLOYEES scored 18 out of a possible 30 points, better than the national average of 15.65.

BIG SPRING EDUCATION EMPLOYEES's capitalization ratio of 18.00 percent in our test was higher than the average for all credit unions, suggesting that it's stronger than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as past-due loans.

A credit union with lots of these kinds of assets could eventually be required to use capital to cover losses, decreasing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, decreasing earnings and increasing the chances of a failure in the future.

BIG SPRING EDUCATION EMPLOYEES 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 lower-than-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 ability to earn money affects its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's earnings test, BIG SPRING EDUCATION EMPLOYEES scored 18 out of a possible 30, exceeding the national average of 10.11.

One indication that BIG SPRING EDUCATION EMPLOYEES is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.