Safe and Sound

SECURITY SERVICE

San Antonio, TX
3
Star Rating
SECURITY SERVICE is an NCUA-insured credit union founded in 1956 and currently based in San Antonio, TX. As of June 30, 2017, the credit union held assets of $9.58 billion.

Thanks to the work of 1,661 full-time employees, the credit union holds loans and leases worth $8.67 billion. SECURITY SERVICE's 746,605 members currently have $7.33 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, SECURITY SERVICE exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three important criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is valuable. It works as a cushion against losses and affords protection for members during periods of economic instability for the credit union. When it comes to safety and soundness, the more capital, the better.

SECURITY SERVICE finished below the national average of 15.26 on our test to measure capital adequacy, racking up 8 out of a possible 30 points.

SECURITY SERVICE had a capitalization ratio of 8.00 percent in our test, less than the average for all credit unions, suggesting that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of problem assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.

A credit union with lots of these types of assets could eventually have to use capital to absorb losses, diminishing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, reducing earnings and elevating the chances of a failure in the future.

On Bankrate's test of asset quality, SECURITY SERVICE scored 36 out of a possible 40 points, lower than the national average of 38.15 points.

SECURITY SERVICE's ratio of problem assets was 13.00 percent in our test, greater than the national average and something to keep an eye on.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. Earnings may be retained by the credit union, increasing its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's test of earnings, SECURITY SERVICE scored 10 out of a possible 30, lower than the national average of 10.31.

The credit union had an earnings ratio of 5.00 percent in our test, above the average for all credit unions, an indication that it's beating 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.