Safe and Sound

BROWN COUNTY EMPLOYEES

GREEN BAY, WI
5
Star Rating
BROWN COUNTY EMPLOYEES is a GREEN BAY, WI-based, NCUA-insured credit union that opened its doors in 1953. The credit union holds $17.5 million in assets, according to June 30, 2017, regulatory filings.

Members have $6.5 million on deposit tended by 2 full-time employees. With that footprint, the credit union has amassed loans and leases worth $6.5 million. Its 1,511 members currently have $13.9 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, BROWN COUNTY EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union did on the three major criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides protection for members when a credit union is experiencing financial instability. It follows then that a credit union's level of capital is a key measurement of its financial fortitude. When looking at safety and soundness, more capital is better.

BROWN COUNTY EMPLOYEES scored above the national average of 15.26 points on our test to measure the adequacy of a credit union's capital, receiving a score of 30 out of a possible 30 points.

BROWN COUNTY EMPLOYEES appears to be more resilient than its peers, with a capitalization ratio of 20.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to estimate the effect of problem assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having extensive holdings of these kinds of assets suggests a credit union may 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 no longer earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

BROWN COUNTY EMPLOYEES scored 40 out of a possible 40 points on Bankrate's asset quality test, beating out the national average of 38.15.

The credit union's ratio of problem assets was 1.00 percent in our test, less than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. Earnings may be retained by the credit union, boosting its capital cushion, or be used to address problematic loans, potentially making the credit union better prepared to withstand economic trouble. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, BROWN COUNTY EMPLOYEES scored 0 out of a possible 30, failing to reach the national average of 10.31.

One sign that BROWN COUNTY EMPLOYEES is running behind its peers in this area was its earnings ratio of 0.00 percent in our test, below 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.