Safe and Sound

DELMARVA POWER SOUTHERN DIVISION

Salisbury, MD
5
Star Rating
DELMARVA POWER SOUTHERN DIVISION is a Salisbury, MD-based, NCUA-insured credit union dating back to 1973. As of December 31, 2017, the credit union had assets of $17.0 million.

DELMARVA POWER SOUTHERN DIVISION's 1,433 members currently have $13.7 million in shares with the credit union. With that footprint, the credit union has amassed loans and leases worth $3.1 million.

Overall, Bankrate believes that, as of December 31, 2017, DELMARVA POWER SOUTHERN DIVISION exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three major criteria Bankrate used to evaluate U.S. 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 cushion against losses and provides protection for members when a credit union is struggling financially. It follows then that a credit union's level of capital is an essential measurement of its financial fortitude. When it comes to safety and soundness, the more capital, the better.

On our test to measure capital adequacy, DELMARVA POWER SOUTHERN DIVISION scored 30 out of a possible 30 points, above the national average of 15.65.

DELMARVA POWER SOUTHERN DIVISION appears to be on more solid financial footing than its peers, with a capitalization ratio of 30.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to estimate the effect of problem assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.

Having large numbers of these kinds of assets suggests a credit union may eventually have to use capital to cover losses, shrinking 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, pushing down earnings and elevating the risk of a failure in the future.

DELMARVA POWER SOUTHERN DIVISION exceeded the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

The credit union's ratio of troubled assets was 0.00 percent 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 earning money affects its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. However, credit unions that are losing money have less ability to do those things.

On Bankrate's earnings test, DELMARVA POWER SOUTHERN DIVISION scored 6 out of a possible 30, below the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication that it's beating 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.