Safe and Sound

GREENBELT

GREENBELT, MD
4
Star Rating
GREENBELT, MD-based GREENBELT is an NCUA-insured credit union started in 1937. The credit union holds $30.0 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 5 full-time employees, the credit union holds loans and leases worth $8.8 million. GREENBELT's 2,825 members currently have $27.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, GREENBELT exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and provides protection for members when a credit union is experiencing economic trouble. It follows then that an institution's level of capital is a useful measurement of its financial strength. When it comes to safety and soundness, the more capital, the better.

On our test to measure capital adequacy, GREENBELT received a score of 10 out of a possible 30 points, falling short of the national average of 15.65.

GREENBELT's capitalization ratio of 10.00 percent in our test was worse than the average for all credit unions, an indication that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as unpaid loans.

Having lots of these kinds of assets may eventually force a credit union to use capital to cover losses, reducing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in lower earnings and potentially more risk of a failure in the future.

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

A below-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. A credit union can retain its earnings, boosting its capital cushion, or use them to address problematic loans, likely making the credit union better able to withstand economic trouble. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's earnings test, GREENBELT scored 8 out of a possible 30, coming in below the national average of 10.11.

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