Safe and Sound

UNITED STATES SENATE

Alexandria, VA
5
Star Rating
Alexandria, VA-based UNITED STATES SENATE is an NCUA-insured credit union started in 1935. As of June 30, 2017, the credit union had assets of $629.3 million.

Thanks to the work of 111 full-time employees, the credit union holds loans and leases worth $459.6 million. Its 34,160 members currently have $548.2 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, UNITED STATES SENATE exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three important criteria Bankrate used to score U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and affords protection for members when a credit union is struggling financially. It follows then that a credit union's level of capital is a useful measurement of its financial resilience. When it comes to safety and soundness, the higher the capital, the better.

UNITED STATES SENATE fell below the national average of 15.26 on our test to measure the adequacy of a credit union's capital, receiving a score of 14 out of a possible 30 points.

UNITED STATES SENATE's capitalization ratio of 12.00 percent in our test was below the average for all credit unions, an indication that it's less well prepared for financial trouble than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as unpaid loans.

A credit union with large numbers of these kinds of assets could eventually be required 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, resulting in reduced earnings and potentially more risk of a future failure.

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

A below-average ratio of troubled assets of 1.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

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 better prepared to withstand financial shocks. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, UNITED STATES SENATE scored 18 out of a possible 30, beating out 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 8.00 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.