Safe and Sound

INTERNATIONALITES

CARLSBAD, NM
4
Star Rating
Started in 1950, INTERNATIONALITES is an NCUA-insured credit union based in CARLSBAD, NM. Regulatory filings show the credit union having assets of $10.9 million, as of December 31, 2017.

With 3 full-time employees, the credit union currently holds loans and leases worth $4.7 million. Its 1,080 members currently have $9.1 million in shares with the credit union.

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

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of an institution's financial strength. It acts as a bulwark against losses and affords protection for members during periods of financial instability for the credit union. When looking at safety and soundness, the more capital, the better.

INTERNATIONALITES scored 22 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, exceeding the national average of 15.65.

INTERNATIONALITES's capitalization ratio of 22.00 percent in our test was better than the average for all credit unions, suggesting that it's stronger than its peers.

Asset Quality Score

This test is intended to try to understand 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 types of assets may eventually be forced to use capital to absorb losses, decreasing its cushion 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 reduced earnings and potentially more risk of a failure in the future.

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

INTERNATIONALITES's ratio of problem assets was 0.00 percent in our test, lower than 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 safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, likely making the credit union more resilient in tough times. Credit unions that are losing money, however, have less ability to do those things.

INTERNATIONALITES scored 4 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 10.11.

One indication that INTERNATIONALITES is outperforming 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.