Safe and Sound

BORINQUEN COMMUNITY

AGUADILLA, PR
3
Star Rating
BORINQUEN COMMUNITY is an NCUA-insured credit union founded in 1951 and currently headquartered in AGUADILLA, PR. The credit union has $17.5 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 9 full-time employees, the credit union has amassed loans and leases worth $9.2 million. Its 2,083 members currently have $15.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BORINQUEN COMMUNITY exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major 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 as protection for members during periods of financial instability for the credit union. Therefore, an institution's level of capital is an essential measurement of its financial fortitude. When looking at safety and soundness, the higher the capital, the better.

BORINQUEN COMMUNITY scored below the national average of 15.65 on our test to measure capital adequacy, scoring 12 out of a possible 30 points.

BORINQUEN COMMUNITY's capitalization ratio of 12.00 percent in our test was less than the average for all credit unions, a sign that it's on less solid financial footing than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as unpaid loans.

Having lots of these types of assets suggests a credit union could eventually have to use capital to absorb losses, shrinking its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in lower earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, BORINQUEN COMMUNITY scored 40 out of a possible 40 points, better than the national average of 38.09 points.

BORINQUEN COMMUNITY's ratio of troubled assets was 0.00 percent in our test, lower than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand economic shocks. Conversely, losses take away from a credit union's ability to do those things.

BORINQUEN COMMUNITY fell behind the national average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting 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.