Safe and Sound

SPARTANBURG CITY EMPLOYEES

SPARTANBURG, SC
4
Star Rating
Founded in 1961, SPARTANBURG CITY EMPLOYEES is an NCUA-insured credit union headquartered in SPARTANBURG, SC. Regulatory filings show the credit union having assets of $4.6 million, as of December 31, 2017.

Members have $3.2 million on deposit tended by 2 full-time employees. With that footprint, the credit union has amassed loans and leases worth $3.2 million. SPARTANBURG CITY EMPLOYEES's 686 members currently have $3.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SPARTANBURG CITY EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and affords protection for members when a credit union is experiencing economic trouble. Therefore, when it comes to measuring an a credit union's financial strength, capital is key. When looking at safety and soundness, the more capital, the better.

SPARTANBURG CITY EMPLOYEES scored above the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, racking up 30 out of a possible 30 points.

SPARTANBURG CITY EMPLOYEES's capitalization ratio of 30.00 percent in our test was above the average for all credit unions, an indication that it's more well prepared for financial trouble than 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 troubled assets, such as unpaid mortgages.

A credit union with a large number of these types of assets could eventually be forced to use capital to cover losses, diminishing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, reducing earnings and elevating the risk of a future failure.

On Bankrate's asset quality test, SPARTANBURG CITY EMPLOYEES scored 40 out of a possible 40 points, above the national average of 38.09 points.

A below-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

How successful a credit union is at making money has an effect on its safety and soundness. Earnings can be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, likely making the credit union better prepared to withstand financial shocks. Obviously, credit unions that are losing money have less ability to do those things.

SPARTANBURG CITY EMPLOYEES scored 0 out of a possible 30 on Bankrate's test of earnings, failing to reach the national average of 10.11.

One indication that the credit union 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.