Safe and Sound

GLAMOUR COMMUNITY

Quebradillas, PR
3
Star Rating
GLAMOUR COMMUNITY is a Quebradillas, PR-based, NCUA-insured credit union started in 1960. The credit union holds assets of $3.2 million, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 2 full-time employees, the credit union currently holds loans and leases worth $1.8 million. Its 1,140 members currently have $2.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, GLAMOUR COMMUNITY exhibited a generally satisfactory condition, earning 3 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.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and provides protection for members when a credit union is experiencing economic instability. It follows then that a credit union's level of capital is an essential measurement of its financial resilience. When looking at safety and soundness, the higher the capital, the better.

GLAMOUR COMMUNITY scored below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, achieving a score of 10 out of a possible 30 points.

GLAMOUR COMMUNITY's capitalization ratio of 10.00 percent in our test was less than the average for all credit unions, an indication that it's weaker than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as past-due loans.

A credit union with lots of these kinds of assets may eventually have to use capital to absorb losses, cutting down on its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in depressed earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, GLAMOUR COMMUNITY scored 40 out of a possible 40 points, beating out the national average of 38.09 points.

Troubled assets made up 0.00 percent of GLAMOUR COMMUNITY's total assets in our test, below the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. Earnings can be retained by the credit union, increasing 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.

GLAMOUR COMMUNITY fell short of the national average on Bankrate's test of earnings, achieving a score of 4 out of a possible 30.

One sign that GLAMOUR COMMUNITY is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, better than 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.