Safe and Sound

BOX ELDER COUNTY

BRIGHAM CITY, UT
5
Star Rating
BRIGHAM CITY, UT-based BOX ELDER COUNTY is an NCUA-insured credit union started in 1954. The credit union has assets of $120.8 million, according to December 31, 2017, regulatory filings.

Members have $68.7 million on deposit tended by 30 full-time employees. With that footprint, the credit union holds loans and leases worth $68.7 million. BOX ELDER COUNTY's 13,089 members currently have $92.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BOX ELDER COUNTY exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three key criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is crucial. It works as a bulwark against losses and provides protection for members when a credit union is experiencing economic instability. When looking at safety and soundness, more capital is preferred.

BOX ELDER COUNTY scored above the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, achieving a score of 30 out of a possible 30 points.

BOX ELDER COUNTY had a capitalization ratio of 30.00 percent in our test, higher than the average for all credit unions, an indication that it could be more resilient in a crisis than its peers.

Asset Quality Score

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

A credit union with a large number 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 thus aren't earning money, reducing earnings and increasing the chances of a future failure.

BOX ELDER COUNTY scored above the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

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

A credit union's profitability affects its long-term survivability. A credit union can retain its earnings, increasing its capital cushion, or use them to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

BOX ELDER COUNTY scored 18 out of a possible 30 on Bankrate's test of earnings, exceeding the national average of 10.11.

One sign that the credit union is beating 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.