Safe and Sound

SIGNATURE

ALEXANDRIA, VA
4
Star Rating
SIGNATURE is an ALEXANDRIA, VA-based, NCUA-insured credit union founded in 1970. Regulatory filings show the credit union having assets of $301.6 million, as of June 30, 2017.

With 53 full-time employees, the credit union currently holds loans and leases worth $246.3 million. SIGNATURE's 23,772 members currently have $237.9 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, SIGNATURE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three important criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of an institution's financial strength. It acts as a bulwark against losses and provides protection for members when a credit union is experiencing financial instability. From a safety and soundness perspective, the more capital, the better.

On our test to measure capital adequacy, SIGNATURE achieved a score of 16 out of a possible 30 points, beating the national average of 15.26.

SIGNATURE's capitalization ratio of 13.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

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

Having a large number of these types of assets means a credit union may have to use capital to absorb losses, cutting down on its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, decreasing earnings and increasing the risk of a failure in the future.

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

SIGNATURE's ratio of problem assets was 2.00 percent in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money affects its safety and soundness. Earnings may be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, likely making the credit union better able to withstand financial trouble. However, credit unions that are losing money have less ability to do those things.

SIGNATURE scored 4 out of a possible 30 on Bankrate's test of earnings, less than the national average of 10.31.

SIGNATURE had an earnings ratio of 1.00 percent in our test, equal to the average for all credit unions, a sign that it's running neck and neck with 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.