Safe and Sound

DELTA REFINING CO EMP

Memphis, TN
5
Star Rating
Memphis, TN-based DELTA REFINING CO EMP is an NCUA-insured credit union founded in 1954. As of December 31, 2017, the credit union had assets of $4.4 million.

The credit union has amassed loans and leases worth $1.7 million. Its 299 members currently have $3.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, DELTA REFINING CO EMP exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three important criteria Bankrate used to grade U.S. credit unions on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is essential. It works as a bulwark against losses and as protection for members when a credit union is struggling financially. When looking at safety and soundness, more capital is better.

DELTA REFINING CO EMP scored 30 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, beating out the national average of 15.65.

DELTA REFINING CO EMP had a capitalization ratio of 30.00 percent in our test, better than the average for all credit unions, suggesting that it's on more solid financial footing than its peers.

Asset Quality Score

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

A credit union with lots of these kinds of assets may eventually have to use capital to absorb losses, cutting down on its cushion of equity. 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 failure in the future.

DELTA REFINING CO EMP scored 40 out of a possible 40 points on Bankrate's asset quality test, exceeding the national average of 38.09.

Earnings score

A credit union's ability to earn money has an effect on its long-term survivability. Earnings may be retained by the credit union, expanding its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, reduce a credit union's ability to do those things.

DELTA REFINING CO EMP fell short of the national average on Bankrate's test of earnings, achieving a score of 4 out of a possible 30.

DELTA REFINING CO EMP had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, an indication 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.