Safe and Sound

SMART

Columbus, OH
3
Star Rating
COLUMBUS, OH-based SMART is an NCUA-insured credit union founded in 1952. The credit union has assets of $31.2 million, according to December 31, 2017, regulatory filings.

With 5 full-time employees, the credit union holds loans and leases worth $12.2 million. Its 3,912 members currently have $27.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SMART exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three important criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is essential. It works as a buffer against losses and as protection for members when a credit union is experiencing economic trouble. When it comes to safety and soundness, the more capital, the better.

On our test to measure capital adequacy, SMART received a score of 12 out of a possible 30 points, falling short of the national average of 15.65.

SMART had a capitalization ratio of 12.00 percent in our test, below the average for all credit unions, suggesting that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of problem assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

Having large numbers of these kinds of assets suggests a credit union could eventually have to use capital to cover losses, decreasing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, SMART scored 40 out of a possible 40 points, beating out 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 earnings performance has an effect on its safety and soundness. A credit union can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, likely making the credit union better able to withstand economic trouble. However, credit unions that are losing money are less able to do those things.

SMART received below-average marks on Bankrate's earnings test, achieving a score of 2 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's running ahead of 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.