Safe and Sound

CYPRUS

West Jordan, UT
5
Star Rating
CYPRUS is a West Jordan, UT-based, NCUA-insured credit union started in 1935. The credit union has assets of $854.5 million, according to December 31, 2017, regulatory filings.

Thanks to the work of 293 full-time employees, the credit union currently holds loans and leases worth $754.6 million. Its 105,184 members currently have $751.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CYPRUS exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union faired on the three important criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial resilience, capital is crucial. It acts as a bulwark against losses and provides protection for members during periods of economic instability for the credit union. From a safety and soundness perspective, the more capital, the better.

CYPRUS finished below the national average of 15.65 on our test to measure capital adequacy, achieving a score of 14 out of a possible 30 points.

CYPRUS appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 14.00 percent in our test, below the average for all credit unions.

Asset Quality Score

This test is intended to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid mortgages.

Having lots of these kinds of assets means a credit union could eventually have to use capital to cover losses, decreasing 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, reducing earnings and increasing the chances of a failure in the future.

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

Troubled assets made up 0.00 percent of CYPRUS's total assets in our test, beneath the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money affects its safety and soundness. A credit union can retain its earnings, boosting its capital cushion, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand financial shocks. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's earnings test, CYPRUS scored 20 out of a possible 30, better than the national average of 10.11.

One sign that CYPRUS is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.