Safe and Sound

S R I EMPLOYEES

BIRMINGHAM, AL
5
Star Rating
Started in 1956, S R I EMPLOYEES is an NCUA-insured credit union headquartered in BIRMINGHAM, AL. As of December 31, 2017, the credit union had assets of $5.4 million.

S R I EMPLOYEES's 291 members currently have $3.9 million in shares with the credit union. With that footprint, the credit union has amassed loans and leases worth $385,370.

Overall, Bankrate believes that, as of December 31, 2017, S R I EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three important criteria Bankrate used to evaluate American 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 affords protection for members during times of financial trouble for the credit union. Therefore, an institution's level of capital is an important measurement of its financial fortitude. From a safety and soundness perspective, the higher the capital, the better.

S R I EMPLOYEES exceeded the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, achieving a score of 30 out of a possible 30 points.

S R I EMPLOYEES's capitalization ratio of 30.00 percent in our test was above the average for all credit unions, suggesting 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 loan loss reserves and overall capitalization could be affected by troubled assets, such as past-due mortgages.

Having a large number of these kinds of assets could eventually require a credit union to use capital to absorb losses, reducing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, reducing earnings and elevating the risk of a failure in the future.

On Bankrate's test of asset quality, S R I EMPLOYEES scored 40 out of a possible 40 points, beating the national average of 38.09 points.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. Earnings can 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 have less ability to do those things.

S R I EMPLOYEES scored 2 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 10.11.

One sign that S R I EMPLOYEES 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.