THE INSTITUTION'S SCORE
Capital acts as a cushion against losses and as protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial fortitude, capital is crucial. From a safety and soundness perspective, the more capital, the better.
On our test to measure capital adequacy, SIMPLICITY received a score of 12 out of a possible 30 points, coming in below the national average of 15.26.
SIMPLICITY's capitalization ratio of 10.00 percent in our test was below the average for all credit unions, a sign that it could be less resilient in a crisis than its peers.