Safe and Sound

PUERTO RICO EMPLOYEE GROUPS

SAN JUAN, PR
2
Star Rating
PUERTO RICO EMPLOYEE GROUPS is an NCUA-insured credit union started in 1959 and currently headquartered in SAN JUAN, PR. Regulatory filings show the credit union having $2.6 million in assets, as of December 31, 2017.

Thanks to the efforts of 2 full-time employees, the credit union has amassed loans and leases worth $1.7 million. Its 1,061 members currently have $2.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PUERTO RICO EMPLOYEE GROUPS exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three key criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial stability, capital is useful. It acts as a cushion against losses and provides protection for members during times of economic trouble for the credit union. From a safety and soundness perspective, more capital is preferred.

PUERTO RICO EMPLOYEE GROUPS received a score of 8 out of a possible 30 points on our test to measure capital adequacy, coming in below the national average of 15.65.

PUERTO RICO EMPLOYEE GROUPS had a capitalization ratio of 8.00 percent in our test, worse than the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

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

Having large numbers of these kinds of assets may eventually require a credit union to use capital to cover losses, decreasing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, decreasing earnings and increasing the risk of a failure in the future.

PUERTO RICO EMPLOYEE GROUPS scored 40 out of a possible 40 points on Bankrate's test of asset quality, above the national average of 38.09.

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 earnings performance has an effect on its long-term survivability. A credit union can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. Losses, on the other hand, lessen a credit union's ability to do those things.

On Bankrate's earnings test, PUERTO RICO EMPLOYEE GROUPS scored 0 out of a possible 30, coming in below the national average of 10.11.

PUERTO RICO EMPLOYEE GROUPS had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's outperforming 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.