Safe and Sound

SPRUANCE CELLOPHANE

NORTH CHESTERFI, VA
2
Star Rating
Founded in 1953, SPRUANCE CELLOPHANE is an NCUA-insured credit union based in NORTH CHESTERFI, VA. As of December 31, 2017, the credit union had assets of $5.5 million.

Members have $2.5 million on deposit tended by 3 full-time employees. With that footprint, the credit union holds loans and leases worth $2.5 million. SPRUANCE CELLOPHANE's 897 members currently have $5.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SPRUANCE CELLOPHANE exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three important criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is useful. It works as a cushion against losses and provides protection for members when a credit union is struggling financially. When looking at safety and soundness, more capital is better.

SPRUANCE CELLOPHANE received a score of 2 out of a possible 30 points on our test to measure capital adequacy, less than the national average of 15.65.

SPRUANCE CELLOPHANE had a capitalization ratio of 2.00 percent in our test, below the average for all credit unions, a sign that it could be less resilient in a crisis than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having a large number of these types of assets suggests a credit union may have to use capital to absorb losses, decreasing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, SPRUANCE CELLOPHANE scored 40 out of a possible 40 points, exceeding 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

How successful a credit union is at earning money has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, reduce a credit union's ability to do those things.

SPRUANCE CELLOPHANE fell behind the national average on Bankrate's earnings test, achieving a score of 0 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 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.