Safe and Sound

PHI BETA SIGMA

WASHINGTON, DC
NR
Star Rating
Founded in 1986, PHI BETA SIGMA is an NCUA-insured credit union based in WASHINGTON, DC. Regulatory filings show the credit union having $469,516 in assets, as of December 31, 2017.

PHI BETA SIGMA's 677 members currently have $432,575 in shares with the credit union. With that footprint, the credit union currently holds loans and leases worth $202,234.

Overall, Bankrate did not have enough information on this institution to give it a star rating. Keep reading for a breakdown of how the credit union faired on the three key criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of a credit union's financial resilience. It works as a bulwark against losses and affords protection for members when a credit union is experiencing economic trouble. When it comes to safety and soundness, the higher the capital, the better.

PHI BETA SIGMA received a score of 6 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, failing to reach the national average of 15.65.

PHI BETA SIGMA appears to be weaker than its peers in this area, with a capitalization ratio of 6.00 percent in our test, below the average for all credit unions.

Asset Quality Score

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

Having extensive holdings of these types of assets suggests a credit union may eventually have to use capital to cover losses, decreasing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, reducing earnings and increasing the chances of a failure in the future.

PHI BETA SIGMA scored 12 out of a possible 40 points on Bankrate's asset quality test, lower than the national average of 38.09.

PHI BETA SIGMA's ratio of problem assets was 1.00 percent in our test, identical to the national average.

Earnings score

A credit union's earnings performance affects its safety and soundness. Earnings may be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in tough times. Obviously, credit unions that are losing money are less able to do those things.

PHI BETA SIGMA scored 0 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 10.11.

PHI BETA SIGMA had an earnings ratio of -2.00 percent in our test, equal to the average for all credit unions, suggesting that it's running neck and neck with 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.