Safe and Sound

SPACE COAST

MELBOURNE, FL
5
Star Rating
SPACE COAST is a MELBOURNE, FL-based, NCUA-insured credit union dating back to 1951. Regulatory filings show the credit union having $4.02 billion in assets, as of June 30, 2017.

With 808 full-time employees, the credit union has amassed loans and leases worth $3.09 billion. SPACE COAST's 371,658 members currently have $3.40 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, SPACE COAST exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three important criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

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 when a credit union is struggling financially. Therefore, a credit union's level of capital is a useful measurement of its financial strength. When looking at safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, SPACE COAST received a score of 14 out of a possible 30 points, lower than the national average of 15.26.

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

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having large numbers of these types of assets may eventually force a credit union to use capital to absorb losses, shrinking its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, pushing down earnings and increasing the risk of a future failure.

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

The credit union's ratio of problem assets was 7.00 percent in our test, identical to the national average.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or use them to address problematic loans, potentially making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money have less ability to do those things.

SPACE COAST beat the national average on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.

One indication that the credit union is running ahead of its peers in this area was its earnings ratio of 9.00 percent in our test, higher 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.