Safe and Sound

FOUNDERS

LANCASTER, SC
5
Star Rating
Started in 1961, FOUNDERS is an NCUA-insured credit union headquartered in LANCASTER, SC. The credit union has assets of $2.11 billion, according to June 30, 2017, regulatory filings.

With 635 full-time employees, the credit union has amassed loans and leases worth $1.68 billion. Its 212,450 members currently have $1.74 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, FOUNDERS exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three important criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

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 during times of financial trouble for the credit union. It follows then that when it comes to measuring an an institution's financial resilience, capital is essential. When it comes to safety and soundness, the higher the capital, the better.

FOUNDERS racked up 18 out of a possible 30 points on our test to measure capital adequacy, beating the national average of 15.26.

FOUNDERS's capitalization ratio of 14.00 percent in our test was better than the average for all credit unions, suggesting that it's more 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 loan loss reserves and overall capitalization could be affected by problem assets, such as past-due mortgages.

A credit union with large numbers of these types of assets could eventually have to use capital to absorb losses, reducing its cushion of equity. 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 diminished earnings and potentially more risk of a future failure.

FOUNDERS scored 40 out of a possible 40 points on Bankrate's asset quality test, better than the national average of 38.15.

The credit union's ratio of problem assets was 4.00 percent in our test, below the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand economic trouble. Obviously, credit unions that are losing money have less ability to do those things.

FOUNDERS scored 12 out of a possible 30 on Bankrate's earnings test, above the national average of 10.31.

FOUNDERS had an earnings ratio of 5.00 percent in our test, above the average for all credit unions, suggesting that it's doing better than 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.