Safe and Sound

HURRICANE CREEK

BENTON, AR
5
Star Rating
HURRICANE CREEK is an NCUA-insured credit union founded in 1957 and currently based in BENTON, AR. Regulatory filings show the credit union having assets of $27.9 million, as of December 31, 2017.

Members have $21.3 million on deposit tended by 7 full-time employees. With that footprint, the credit union has amassed loans and leases worth $21.3 million. HURRICANE CREEK's 3,760 members currently have $23.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HURRICANE CREEK exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major criteria Bankrate used to score U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for members during times of economic instability for the credit union. Therefore, when it comes to measuring an an institution's financial strength, capital is crucial. When it comes to safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, HURRICANE CREEK scored 22 out of a possible 30 points, beating the national average of 15.65.

HURRICANE CREEK appears to be more resilient than its peers, with a capitalization ratio of 22.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the impact of troubled assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.

Having lots of these types of assets means a credit union could eventually have to use capital to absorb losses, diminishing its equity buffer. 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, pushing down earnings and increasing the risk of a failure in the future.

On Bankrate's asset quality test, HURRICANE CREEK scored 40 out of a possible 40 points, beating out 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 superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. A credit union can retain its earnings, boosting its capital cushion, or use them to address problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses reduce a credit union's ability to do those things.

HURRICANE CREEK scored 16 out of a possible 30 on Bankrate's test of earnings, above the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign 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.