Safe and Sound

BOX BUTTE PUBLIC EMPLOYEES

ALLIANCE, NE
5
Star Rating
ALLIANCE, NE-based BOX BUTTE PUBLIC EMPLOYEES is an NCUA-insured credit union started in 1940. As of December 31, 2017, the credit union held assets of $4.9 million.

Members have $3.2 million on deposit tended by 3 full-time employees. With that footprint, the credit union currently holds loans and leases worth $3.2 million. Its 609 members currently have $4.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BOX BUTTE PUBLIC 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 major criteria Bankrate used to evaluate American credit unions on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of an institution's financial fortitude. It works as a buffer against losses and as protection for members during times of economic instability for the credit union. When it comes to safety and soundness, more capital is better.

BOX BUTTE PUBLIC EMPLOYEES beat out the national average of 15.65 points on our test to measure capital adequacy, receiving a score of 24 out of a possible 30 points.

BOX BUTTE PUBLIC EMPLOYEES had a capitalization ratio of 24.00 percent in our test, above the average for all credit unions, suggesting that it could be more resilient in a crisis than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact 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.

A credit union with extensive holdings of these kinds of assets may eventually have to use capital to absorb losses, reducing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in depressed earnings and potentially more risk of a future failure.

BOX BUTTE PUBLIC EMPLOYEES scored 40 out of a possible 40 points on Bankrate's asset quality test, above the national average of 38.09.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, lower than the national average and potentially indicative of greater financial strength than 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, expanding its capital buffer, or be used to address problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, diminish a credit union's ability to do those things.

On Bankrate's test of earnings, BOX BUTTE PUBLIC EMPLOYEES scored 8 out of a possible 30, coming in below the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication that it's doing better than 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.