Safe and Sound

BRONCO

FRANKLIN, VA
3
Star Rating
BRONCO is a FRANKLIN, VA-based, NCUA-insured credit union dating back to 1941. Regulatory filings show the credit union having $181.8 million in assets, as of December 31, 2017.

Members have $132.7 million on deposit tended by 59 full-time employees. With that footprint, the credit union currently holds loans and leases worth $132.7 million. Its 17,898 members currently have $167.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BRONCO 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 faired 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 cushion against losses and affords protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an an institution's financial strength, capital is essential. When it comes to safety and soundness, more capital is better.

On our test to measure the adequacy of a credit union's capital, BRONCO received a score of 6 out of a possible 30 points, failing to reach the national average of 15.65.

BRONCO's capitalization ratio of 6.00 percent in our test was worse than the average for all credit unions, an indication that it's on less solid financial footing 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 problem assets, such as unpaid mortgages.

A credit union with lots of these types of assets could eventually have to use capital to absorb losses, decreasing its equity buffer. 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 elevating the risk of a failure in the future.

BRONCO scored 32 out of a possible 40 points on Bankrate's asset quality test, lower than the national average of 38.09.

A below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. A credit union can retain its earnings, increasing its capital cushion, or use them to address problematic loans, potentially making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money are less able to do those things.

BRONCO beat the national average on Bankrate's earnings test, achieving a score of 14 out of a possible 30.

BRONCO had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign that it's running ahead of 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.