Safe and Sound

CONSTELLATION

RESTON, VA
5
Star Rating
RESTON, VA-based CONSTELLATION is an NCUA-insured credit union founded in 1944. As of December 31, 2017, the credit union had assets of $211.4 million.

Members have $141.0 million on deposit tended by 24 full-time employees. With that footprint, the credit union currently holds loans and leases worth $141.0 million. Its 8,144 members currently have $178.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CONSTELLATION exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to grade U.S. credit unions on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of a credit union's financial resilience. It acts as a bulwark against losses and as protection for members during periods of economic trouble for the credit union. When it comes to safety and soundness, the more capital, the better.

CONSTELLATION did better than the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, scoring 22 out of a possible 30 points.

CONSTELLATION had a capitalization ratio of 22.00 percent in our test, higher than the average for all credit unions, an indication that it's on more solid financial footing than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the effect of troubled assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having extensive holdings of these kinds of assets suggests a credit union could have to use capital to absorb losses, diminishing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, decreasing earnings and increasing the chances of a future failure.

On Bankrate's test of asset quality, CONSTELLATION scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand financial trouble. Losses, on the other hand, diminish a credit union's ability to do those things.

On Bankrate's earnings test, CONSTELLATION scored 8 out of a possible 30, below the national average of 10.11.

One sign that CONSTELLATION is doing better than its peers in this area was its earnings ratio of 0.00 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.