Safe and Sound

BORINQUEN SUR

PENUELAS, PR
1
Star Rating
BORINQUEN SUR is a PENUELAS, PR-based, NCUA-insured credit union started in 1956. The credit union holds $10.0 million in assets, according to December 31, 2017, regulatory filings.

Members have $4.8 million on deposit tended by 5 full-time employees. With that footprint, the credit union has amassed loans and leases worth $4.8 million. BORINQUEN SUR's 2,419 members currently have $9.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BORINQUEN SUR exhibited a significantly below-average condition, earning 1 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three major criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and provides protection for members during periods of economic instability for the credit union. It follows then that an institution's level of capital is an essential measurement of its financial strength. From a safety and soundness perspective, more capital is preferred.

On our test to measure capital adequacy, BORINQUEN SUR received a score of 10 out of a possible 30 points, lower than the national average of 15.65.

BORINQUEN SUR had a capitalization ratio of 10.00 percent in our test, below the average for all credit unions, suggesting that it could be less resilient in a crisis 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 unpaid mortgages.

Having lots of these kinds of assets means a credit union may eventually have to use capital to cover losses, cutting down on its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, diminishing earnings and increasing the chances of a future failure.

BORINQUEN SUR finished below the national average of 38.09 on Bankrate's test of asset quality, racking up 20 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

How successful a credit union is at earning money has an effect on its safety and soundness. Earnings may be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. Conversely, losses lessen a credit union's ability to do those things.

BORINQUEN SUR scored 0 out of a possible 30 on Bankrate's earnings test, falling short of the national average of 10.11.

One indication that the credit union is outperforming 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.