Safe and Sound

SAC

BELLEVUE, NE
4
Star Rating
Started in 1946, SAC is an NCUA-insured credit union headquartered in BELLEVUE, NE. Regulatory filings show the credit union having assets of $890.8 million, as of June 30, 2017.

Members have $780.1 million on deposit tended by 207 full-time employees. With that footprint, the credit union has amassed loans and leases worth $780.1 million. SAC's 101,319 members currently have $702.9 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, SAC exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three important criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of a credit union's financial strength. It acts as a buffer against losses and provides protection for members when a credit union is experiencing financial trouble. When looking at safety and soundness, more capital is preferred.

SAC fell below the national average of 15.26 on our test to measure the adequacy of a credit union's capital, receiving a score of 8 out of a possible 30 points.

SAC had a capitalization ratio of 9.00 percent in our test, below 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 is intended 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 loans.

A credit union with large numbers of these types of assets could eventually be forced to use capital to absorb losses, shrinking its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a future failure.

SAC scored below the national average of 38.15 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

A greater-than-average ratio of troubled assets of 11.00 percent in our test was something to keep an eye on for SAC.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. Earnings can be retained by the credit union, giving a boost to its capital cushion, or be used to deal with problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses take away from a credit union's ability to do those things.

On Bankrate's test of earnings, SAC scored 18 out of a possible 30, better than the national average of 10.31.

One sign that SAC is outperforming its peers in this area was its earnings ratio of 8.00 percent in our test, better than the average for all credit unions.








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.