Safe and Sound

KBR HERITAGE

HOUSTON, TX
4
Star Rating
KBR HERITAGE is an NCUA-insured credit union started in 1953 and currently based in HOUSTON, TX. The credit union holds assets of $90.9 million, according to December 31, 2017, regulatory filings.

Members have $22.5 million on deposit tended by 10 full-time employees. With that footprint, the credit union holds loans and leases worth $22.5 million. KBR HERITAGE's 4,914 members currently have $79.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, KBR HERITAGE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did 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

Capital acts as a buffer against losses and affords protection for members when a credit union is struggling financially. It follows then that a credit union's level of capital is an essential measurement of its financial strength. 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, KBR HERITAGE achieved a score of 16 out of a possible 30 points, beating the national average of 15.65.

KBR HERITAGE had a capitalization ratio of 16.00 percent in our test, equal to the average for all credit unions, suggesting that it's running neck and neck with its peers.

Asset Quality Score

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

Having a large number of these kinds of assets means a credit union could have to use capital to absorb losses, shrinking its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in lower earnings and potentially more risk of a failure in the future.

KBR HERITAGE exceeded the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 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 profitability affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, likely making the credit union better prepared to withstand financial shocks. However, credit unions that are losing money are less able to do those things.

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

One sign that KBR HERITAGE is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.