Safe and Sound

NUEVA ESPERANZA COMMUNITY

TOLEDO, OH
4
Star Rating
TOLEDO, OH-based NUEVA ESPERANZA COMMUNITY is an NCUA-insured credit union founded in 2010. The credit union has assets of $1.9 million, according to December 31, 2017, regulatory filings.

NUEVA ESPERANZA COMMUNITY's 679 members currently have $263,318 in shares with the credit union. With that footprint, the credit union holds loans and leases worth $1.5 million.

Overall, Bankrate believes that, as of December 31, 2017, NUEVA ESPERANZA COMMUNITY 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 American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is key. It acts as a bulwark against losses and provides protection for members during periods of financial instability for the credit union. When looking at safety and soundness, more capital is preferred.

NUEVA ESPERANZA COMMUNITY fell below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, receiving a score of 10 out of a possible 30 points.

NUEVA ESPERANZA COMMUNITY's capitalization ratio of 10.00 percent in our test was less than the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

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

Having lots of these kinds of assets could eventually require a credit union to use capital to absorb losses, shrinking its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in lower earnings and potentially more risk of a future failure.

NUEVA ESPERANZA COMMUNITY scored 24 out of a possible 40 points on Bankrate's asset quality test, failing to reach the national average of 38.09.

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

Earnings score

A credit union's profitability affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to address problematic loans, potentially making the credit union better able to withstand financial shocks. Conversely, losses reduce a credit union's ability to do those things.

NUEVA ESPERANZA COMMUNITY exceeded the national average on Bankrate's earnings test, achieving a score of 30 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication 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.