Safe and Sound

S.M.S.D.

BUFFALO, NY
5
Star Rating
Started in 1975, S.M.S.D. is an NCUA-insured credit union based in BUFFALO, NY. The credit union has $2.2 million in assets, according to December 31, 2017, regulatory filings.

The credit union has amassed loans and leases worth $785,491. Its 380 members currently have $1.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, S.M.S.D. exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three important criteria Bankrate used to score U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of a credit union's financial resilience. It acts as a cushion against losses and affords protection for members when a credit union is struggling financially. When looking at safety and soundness, the more capital, the better.

S.M.S.D. exceeded the national average of 15.65 points on our test to measure capital adequacy, achieving a score of 28 out of a possible 30 points.

S.M.S.D.'s capitalization ratio of 28.00 percent in our test was better than the average for all credit unions, a sign that it's on more solid financial footing than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as past-due mortgages.

Having lots of these types of assets suggests a credit union could eventually have to use capital to cover losses, shrinking its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, pushing down earnings and increasing the risk of a future failure.

S.M.S.D. beat out the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

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

Earnings score

A credit union's earnings performance affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. Obviously, credit unions that are losing money have less ability to do those things.

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

One sign that S.M.S.D. is running ahead of 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.