Safe and Sound

DEL NORTE

Los Alamos, NM
4
Star Rating
Los Alamos, NM-based DEL NORTE is an NCUA-insured credit union founded in 1954. Regulatory filings show the credit union having $592.3 million in assets, as of December 31, 2017.

Members have $414.9 million on deposit tended by 139 full-time employees. With that footprint, the credit union currently holds loans and leases worth $414.9 million. DEL NORTE's 47,906 members currently have $516.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, DEL NORTE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members during times of financial trouble for the credit union. It follows then that when it comes to measuring an an institution's financial strength, capital is important. From a safety and soundness perspective, the more capital, the better.

DEL NORTE finished below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, racking up 14 out of a possible 30 points.

DEL NORTE had a capitalization ratio of 14.00 percent in our test, lower than the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

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

A credit union with large numbers of these kinds of assets could eventually have to use capital to cover losses, decreasing its equity cushion. 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 diminished earnings and potentially more risk of a failure in the future.

DEL NORTE scored 40 out of a possible 40 points on Bankrate's asset quality test, beating out the national average of 38.09.

A lower-than-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

How successful a credit union is at earning money affects its safety and soundness. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to address 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.

DEL NORTE fell short of the national average on Bankrate's test of earnings, achieving a score of 10 out of a possible 30.

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