Safe and Sound

SOUTHWEST RESEARCH CENTER

San Antonio, TX
3
Star Rating
SOUTHWEST RESEARCH CENTER is a San Antonio, TX-based, NCUA-insured credit union started in 1956. As of December 31, 2017, the credit union had assets of $73.4 million.

Members have $40.8 million on deposit tended by 17 full-time employees. With that footprint, the credit union has amassed loans and leases worth $40.8 million. Its 6,296 members currently have $66.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SOUTHWEST RESEARCH CENTER exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three key criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of a credit union's financial fortitude. It works as a cushion against losses and provides protection for members when a credit union is struggling financially. From a safety and soundness perspective, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, SOUTHWEST RESEARCH CENTER received a score of 8 out of a possible 30 points, coming in below the national average of 15.65.

SOUTHWEST RESEARCH CENTER had a capitalization ratio of 8.00 percent in our test, less than the average for all credit unions, a sign that it's less well prepared for financial trouble than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as unpaid mortgages.

A credit union with large numbers of these kinds of assets may eventually be required to use capital to cover losses, decreasing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in diminished earnings and potentially more risk of a future failure.

SOUTHWEST RESEARCH CENTER did better than the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

A below-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

How successful a credit union is at making money has an effect on its safety and soundness. 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. However, credit unions that are losing money are less able to do those things.

SOUTHWEST RESEARCH CENTER scored 4 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, higher 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.