Safe and Sound

STATE EMPLOYEES CU OF MARYLAND, INC

Linthicum, MD
4
Star Rating
Linthicum, MD-based STATE EMPLOYEES CU OF MARYLAND, INC is an NCUA-insured credit union started in 1951. As of December 31, 2017, the credit union had assets of $3.37 billion.

Thanks to the efforts of 358 full-time employees, the credit union holds loans and leases worth $2.94 billion. Its 250,529 members currently have $3.02 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, STATE EMPLOYEES CU OF MARYLAND, INC exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three key criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of an institution's financial strength. It works as a cushion against losses and affords protection for members during times of financial instability for the credit union. From a safety and soundness perspective, the higher the capital, the better.

STATE EMPLOYEES CU OF MARYLAND, INC received a score of 10 out of a possible 30 points on our test to measure capital adequacy, less than the national average of 15.65.

STATE EMPLOYEES CU OF MARYLAND, INC's capitalization ratio of 10.00 percent in our test was lower than the average for all credit unions, a sign that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

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

Having large numbers of these kinds of assets may eventually require a credit union to use capital to absorb losses, reducing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

STATE EMPLOYEES CU OF MARYLAND, INC fell below the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

The credit union's ratio of problem assets was 0.00 percent in our test, lower than 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 affects its long-term survivability. Earnings may be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses reduce a credit union's ability to do those things.

STATE EMPLOYEES CU OF MARYLAND, INC scored 12 out of a possible 30 on Bankrate's earnings test, beating the national average of 10.11.

One indication that the credit union is beating its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.