Safe and Sound

PROGRESSIVE

MOBILE, AL
4
Star Rating
PROGRESSIVE is an NCUA-insured credit union founded in 1956 and currently based in MOBILE, AL. The credit union holds $6.0 million in assets, according to December 31, 2017, regulatory filings.

Members have $1.9 million on deposit tended by 2 full-time employees. With that footprint, the credit union has amassed loans and leases worth $1.9 million. PROGRESSIVE's 645 members currently have $4.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PROGRESSIVE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members during periods of financial trouble for the credit union. It follows then that a credit union's level of capital is a useful measurement of its financial strength. When looking at safety and soundness, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, PROGRESSIVE scored 30 out of a possible 30 points, beating out the national average of 15.65.

PROGRESSIVE's capitalization ratio of 30.00 percent in our test was above the average for all credit unions, a sign that it's on more solid financial footing than its peers.

Asset Quality Score

This test's purpose is 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.

Having lots of these kinds of assets means a credit union may eventually have to use capital to absorb losses, decreasing 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, pushing down earnings and elevating the chances of a failure in the future.

On Bankrate's asset quality test, PROGRESSIVE scored 36 out of a possible 40 points, coming in below the national average of 38.09 points.

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

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

PROGRESSIVE scored 0 out of a possible 30 on Bankrate's test of earnings, below the national average of 10.11.

One sign that the credit union is running ahead of 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.