Safe and Sound

DELAWARE RIVER & BAY AUTH EMP

New Castle, DE
4
Star Rating
Founded in 1965, DELAWARE RIVER & BAY AUTH EMP is an NCUA-insured credit union based in New Castle, DE. As of December 31, 2017, the credit union had assets of $6.6 million.

The credit union currently holds loans and leases worth $512,590. DELAWARE RIVER & BAY AUTH EMP's 570 members currently have $5.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, DELAWARE RIVER & BAY AUTH EMP exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three major criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is valuable. It works as a buffer against losses and as protection for members during times of economic trouble for the credit union. From a safety and soundness perspective, the more capital, the better.

On our test to measure capital adequacy, DELAWARE RIVER & BAY AUTH EMP achieved a score of 16 out of a possible 30 points, exceeding the national average of 15.65.

DELAWARE RIVER & BAY AUTH EMP had a capitalization ratio of 16.00 percent in our test, the same as the average for all credit unions, suggesting that it's running neck and neck with its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of problem assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with lots of these types of assets may eventually have to use capital to cover losses, cutting down on its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in lower earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, DELAWARE RIVER & BAY AUTH EMP scored 40 out of a possible 40 points, above the national average of 38.09 points.

A lower-than-average ratio of problem 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 long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or use them to address problematic loans, potentially making the credit union better able to withstand financial trouble. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, DELAWARE RIVER & BAY AUTH EMP scored 10 out of a possible 30, less than the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting 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.