Safe and Sound

SERVICE

PORTSMOUTH, NH
4
Star Rating
SERVICE is a PORTSMOUTH, NH-based, NCUA-insured credit union that opened its doors in 1957. As of June 30, 2017, the credit union held assets of $3.18 billion.

With 615 full-time employees, the credit union has amassed loans and leases worth $2.59 billion. SERVICE's 248,190 members currently have $2.58 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, SERVICE 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 score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and as protection for members during times of financial instability for the credit union. Therefore, when it comes to measuring an an institution's financial resilience, capital is crucial. When it comes to safety and soundness, the higher the capital, the better.

SERVICE came in below the national average of 15.26 on our test to measure capital adequacy, achieving a score of 14 out of a possible 30 points.

SERVICE had a capitalization ratio of 11.00 percent in our test, lower than the average for all credit unions, a sign that it's less well prepared for financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of problem assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

Having a large number of these types of assets suggests a credit union may have to use capital to cover losses, cutting down on its equity buffer. 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, SERVICE scored 40 out of a possible 40 points, exceeding the national average of 38.15 points.

Troubled assets made up 2.00 percent of the credit union's total assets in our test, lower than the national average and suggestive 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 long-term survivability. Earnings can be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, potentially making the credit union better prepared to withstand financial shocks. Conversely, losses diminish a credit union's ability to do those things.

SERVICE scored 14 out of a possible 30 on Bankrate's earnings test, better than the national average of 10.31.

One sign that the credit union is outperforming its peers in this area was its earnings ratio of 6.00 percent in our test, above 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.