Safe and Sound

SKYLINE FINANCIAL

Waterbury, CT
3
Star Rating
Started in 1935, SKYLINE FINANCIAL is an NCUA-insured credit union based in Waterbury, CT. Regulatory filings show the credit union having assets of $31.3 million, as of December 31, 2017.

Thanks to the work of 8 full-time employees, the credit union holds loans and leases worth $18.3 million. SKYLINE FINANCIAL's 4,828 members currently have $27.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SKYLINE FINANCIAL exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three key criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an a credit union's financial resilience, capital is crucial. When looking at safety and soundness, the higher the capital, the better.

SKYLINE FINANCIAL achieved a score of 16 out of a possible 30 points on our test to measure capital adequacy, beating out the national average of 15.65.

SKYLINE FINANCIAL had a capitalization ratio of 16.00 percent in our test, identical the average for all credit unions, a sign that it's running neck and neck with its peers.

Asset Quality Score

This test is intended to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as unpaid loans.

Having a large number of these types of assets means a credit union could have to use capital to absorb losses, cutting down on its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, diminishing earnings and increasing the chances of a future failure.

On Bankrate's asset quality test, SKYLINE FINANCIAL scored 40 out of a possible 40 points, better than 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 greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money affects its long-term survivability. Earnings may be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, potentially making the credit union better able to withstand financial trouble. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, SKYLINE FINANCIAL scored 0 out of a possible 30, failing to reach the national average of 10.11.

SKYLINE FINANCIAL had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, a sign that it's outperforming 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.