Safe and Sound

STATE EMPLOYEES CU OF MARYLAND, INC

Linthicum, MD
4
Star Rating
STATE EMPLOYEES CU OF MARYLAND, INC is a Linthicum, MD-based, NCUA-insured credit union founded in 1951. The credit union has assets of $3.36 billion, according to June 30, 2017, regulatory filings.

Thanks to the efforts of 356 full-time employees, the credit union has amassed loans and leases worth $2.88 billion. Its 247,399 members currently have $2.97 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, STATE EMPLOYEES CU OF MARYLAND, INC exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three major criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and as protection for members during periods of financial instability for the credit union. It follows then that an institution's level of capital is a useful measurement of its financial resilience. 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, STATE EMPLOYEES CU OF MARYLAND, INC received a score of 10 out of a possible 30 points, lower than the national average of 15.26.

STATE EMPLOYEES CU OF MARYLAND, INC's capitalization ratio of 10.00 percent in our test was less 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 impact of problem assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with extensive holdings of these types of assets could eventually be required to use capital to absorb losses, reducing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in diminished earnings and potentially more risk of a failure in the future.

STATE EMPLOYEES CU OF MARYLAND, INC scored 36 out of a possible 40 points on Bankrate's asset quality test, below the national average of 38.15.

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

Earnings score

A credit union's ability to earn money affects its long-term survivability. A credit union can retain its earnings, boosting its capital cushion, or use them to address problematic loans, potentially making the credit union better prepared to withstand economic trouble. Conversely, losses lessen a credit union's ability to do those things.

STATE EMPLOYEES CU OF MARYLAND, INC scored 12 out of a possible 30 on Bankrate's test of earnings, above the national average of 10.31.

One sign that the credit union is running ahead of its peers in this area was its earnings ratio of 5.00 percent in our test, better 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.