Safe and Sound

SPE

STATE COLLEGE, PA
4
Star Rating
STATE COLLEGE, PA-based SPE is an NCUA-insured credit union founded in 1978. Regulatory filings show the credit union having assets of $89.2 million, as of December 31, 2017.

Members have $54.2 million on deposit tended by 26 full-time employees. With that footprint, the credit union currently holds loans and leases worth $54.2 million. Its 10,063 members currently have $82.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SPE 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 U.S. 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 during times of financial instability for the credit union. Therefore, a credit union's level of capital is a key measurement of its financial strength. From a safety and soundness perspective, the more capital, the better.

SPE came in below the national average of 15.65 on our test to measure capital adequacy, racking up 6 out of a possible 30 points.

SPE appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 6.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the effect of problem assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having extensive holdings of these types of assets suggests a credit union may have to use capital to cover losses, reducing 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 money, decreasing earnings and increasing the risk of a future failure.

SPE exceeded the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

Troubled assets made up 0.00 percent of SPE's total assets in our test, beneath the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. Earnings may be retained by the credit union, increasing its capital cushion, 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.

On Bankrate's earnings test, SPE scored 14 out of a possible 30, exceeding the national average of 10.11.

One sign that SPE is beating its peers in this area was its earnings ratio of 0.00 percent in our test, higher than 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.