Safe and Sound

INTERCORP

Amarillo, TX
4
Star Rating
INTERCORP is an AMARILLO, TX-based, NCUA-insured credit union founded in 1941. As of December 31, 2017, the credit union held assets of $4.5 million.

Thanks to the work of 2 full-time employees, the credit union holds loans and leases worth $2.6 million. Its 813 members currently have $3.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, INTERCORP exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three key criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial resilience, capital is valuable. It works as a cushion against losses and as protection for members when a credit union is struggling financially. When looking at safety and soundness, more capital is preferred.

INTERCORP scored 24 out of a possible 30 points on our test to measure capital adequacy, beating out the national average of 15.65.

INTERCORP's capitalization ratio of 24.00 percent in our test was higher than the average for all credit unions, an indication that it's on more solid financial footing than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of problem assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

Having a large number of these types of assets suggests a credit union may eventually have to use capital to cover losses, cutting down on its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in depressed earnings and potentially more risk of a future failure.

INTERCORP exceeded the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

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

A credit union's profitability has an effect on its safety and soundness. Earnings can be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, potentially making the credit union better able to withstand financial shocks. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, INTERCORP scored 0 out of a possible 30, below the national average of 10.11.

One indication that INTERCORP is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.