Safe and Sound

SOUNDVIEW FINANCIAL

Bethel, CT
4
Star Rating
Started in 1980, SOUNDVIEW FINANCIAL is an NCUA-insured credit union headquartered in Bethel, CT. The credit union holds $33.1 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the work of 9 full-time employees, the credit union holds loans and leases worth $19.1 million. SOUNDVIEW FINANCIAL's 3,881 members currently have $28.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SOUNDVIEW FINANCIAL exhibited a good condition, earning 4 out of 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 grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of an institution's financial resilience. It acts as a cushion against losses and as protection for members during periods of economic trouble for the credit union. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, SOUNDVIEW FINANCIAL scored 16 out of a possible 30 points, beating out the national average of 15.65.

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

Asset Quality Score

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

A credit union with a large number of these kinds of assets may eventually be forced to use capital to absorb losses, diminishing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, decreasing earnings and elevating the risk of a future failure.

On Bankrate's asset quality test, SOUNDVIEW FINANCIAL scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

SOUNDVIEW FINANCIAL's ratio of troubled assets was 0.00 percent in our test, lower than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money affects its safety and soundness. Earnings may be retained by the credit union, expanding its capital cushion, or be used to deal with problematic loans, likely making the credit union better able to withstand financial shocks. Obviously, credit unions that are losing money have less ability to do those things.

SOUNDVIEW FINANCIAL fell behind the national average on Bankrate's earnings test, achieving a score of 4 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, an indication 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.