Safe and Sound

H.B.I. EMPLOYEES

SAINT PAUL, MN
4
Star Rating
SAINT PAUL, MN-based H.B.I. EMPLOYEES is an NCUA-insured credit union founded in 1954. Regulatory filings show the credit union having $7.6 million in assets, as of December 31, 2017.

With 2 full-time employees, the credit union currently holds loans and leases worth $2.8 million. H.B.I. EMPLOYEES's 1,063 members currently have $6.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, H.B.I. EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three important criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and as protection for members during periods of financial instability for the credit union. It follows then that when it comes to measuring an an institution's financial resilience, capital is valuable. From a safety and soundness perspective, more capital is preferred.

H.B.I. EMPLOYEES scored above the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, receiving a score of 18 out of a possible 30 points.

H.B.I. EMPLOYEES's capitalization ratio of 18.00 percent in our test was higher than the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of problem assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with extensive holdings of these kinds of assets could eventually be forced to use capital to cover losses, cutting down on its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, diminishing earnings and increasing the risk of a future failure.

H.B.I. EMPLOYEES beat out the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

The credit union's ratio of troubled assets was 0.00 percent in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance has an effect on its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, potentially making the credit union more resilient in times of trouble. Credit unions that are losing money, however, have less ability to do those things.

H.B.I. EMPLOYEES scored 4 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 10.11.

H.B.I. EMPLOYEES had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's running ahead of 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.