Safe and Sound

SRP

NORTH AUGUSTA, SC
5
Star Rating
NORTH AUGUSTA, SC-based SRP is an NCUA-insured credit union started in 1960. The credit union holds assets of $857.9 million, according to December 31, 2017, regulatory filings.

Members have $550.4 million on deposit tended by 271 full-time employees. With that footprint, the credit union has amassed loans and leases worth $550.4 million. Its 122,868 members currently have $754.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SRP exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and provides protection for members during times of economic instability for the credit union. It follows then that when it comes to measuring an an institution's financial fortitude, capital is essential. When looking at safety and soundness, more capital is preferred.

SRP came in below the national average of 15.65 on our test to measure capital adequacy, receiving a score of 12 out of a possible 30 points.

SRP had a capitalization ratio of 12.00 percent in our test, lower than the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of problem assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with a large number of these types of assets may eventually have to use capital to absorb losses, reducing its buffer 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, reducing earnings and increasing the risk of a future failure.

SRP scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating the national average of 38.09.

Troubled assets made up 0.00 percent of SRP's total assets in our test, beneath the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. Earnings can be retained by the credit union, giving a boost to its capital cushion, or be used to address problematic loans, likely making the credit union more resilient in tough times. Conversely, losses diminish a credit union's ability to do those things.

On Bankrate's earnings test, SRP scored 26 out of a possible 30, above the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, a sign 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.