Safe and Sound

SYCAMORE

SYCAMORE, AL
5
Star Rating
Founded in 1945, SYCAMORE is an NCUA-insured credit union based in SYCAMORE, AL. Regulatory filings show the credit union having $19.1 million in assets, as of June 30, 2017.

Members have $14.2 million on deposit tended by 8 full-time employees. With that footprint, the credit union currently holds loans and leases worth $14.2 million. Its 1,723 members currently have $15.2 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, SYCAMORE exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and affords protection for members when a credit union is struggling financially. It follows then that an institution's level of capital is an important measurement of its financial strength. When it comes to safety and soundness, the more capital, the better.

On our test to measure capital adequacy, SYCAMORE scored 30 out of a possible 30 points, better than the national average of 15.26.

SYCAMORE appears to be stronger than its peers, with a capitalization ratio of 20.00 percent in our test, above the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine 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.

A credit union with extensive holdings of these types of assets may eventually have to use capital to absorb losses, reducing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, SYCAMORE scored 36 out of a possible 40 points, coming in below the national average of 38.15 points.

SYCAMORE's ratio of problem assets was 7.00 percent in our test, the same as the national average.

Earnings score

A credit union's earnings performance affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, likely making the credit union more resilient in tough times. Conversely, losses reduce a credit union's ability to do those things.

On Bankrate's earnings test, SYCAMORE scored 24 out of a possible 30, beating out the national average of 10.31.

SYCAMORE had an earnings ratio of 14.00 percent in our test, higher than the average for all credit unions, an indication that it's doing better than 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.