Safe and Sound

SANDIA LABORATORY

Albuquerque, NM
4
Star Rating
SANDIA LABORATORY is an Albuquerque, NM-based, NCUA-insured credit union dating back to 1948. The credit union holds $2.47 billion in assets, according to December 31, 2017, regulatory filings.

Members have $1.24 billion on deposit tended by 296 full-time employees. With that footprint, the credit union has amassed loans and leases worth $1.24 billion. SANDIA LABORATORY's 92,475 members currently have $2.21 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SANDIA LABORATORY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three major criteria Bankrate used to evaluate U.S. credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of a credit union's financial strength. It acts as a cushion against losses and provides protection for members when a credit union is struggling financially. When it comes to safety and soundness, more capital is preferred.

On our test to measure capital adequacy, SANDIA LABORATORY received a score of 10 out of a possible 30 points, less than the national average of 15.65.

SANDIA LABORATORY's capitalization ratio of 10.00 percent in our test was less than the average for all credit unions, a sign that it's weaker than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as past-due loans.

A credit union with large numbers of these types of assets may eventually be required to use capital to absorb losses, diminishing 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, diminishing earnings and elevating the risk of a future failure.

On Bankrate's asset quality test, SANDIA LABORATORY scored 40 out of a possible 40 points, better than the national average of 38.09 points.

A lower-than-average ratio of troubled 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 earnings performance affects its safety and soundness. Earnings may be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. However, credit unions that are losing money are less able to do those things.

SANDIA LABORATORY scored 18 out of a possible 30 on Bankrate's earnings test, beating out the national average of 10.11.

SANDIA LABORATORY had an earnings ratio of 0.00 percent in our test, above 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.