Safe and Sound

STEPPING STONES COMMUNITY

Wilmington, DE
5
Star Rating
STEPPING STONES COMMUNITY is an NCUA-insured credit union started in 2011 and currently based in Wilmington, DE. As of December 31, 2017, the credit union held assets of $1.7 million.

The credit union holds loans and leases worth $71,548. Its 445 members currently have $192,554 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, STEPPING STONES COMMUNITY 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 U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial resilience, capital is valuable. From a safety and soundness perspective, more capital is better.

On our test to measure the adequacy of a credit union's capital, STEPPING STONES COMMUNITY achieved a score of 30 out of a possible 30 points, beating the national average of 15.65.

STEPPING STONES COMMUNITY's capitalization ratio of 30.00 percent in our test was higher than the average for all credit unions, an indication that it's stronger than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of problem assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

A credit union with extensive holdings of these kinds of assets could eventually be forced to use capital to cover losses, diminishing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a failure in the future.

STEPPING STONES COMMUNITY exceeded the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 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

A credit union's ability to earn money affects its safety and soundness. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the credit union better able to withstand economic trouble. Conversely, losses take away from a credit union's ability to do those things.

On Bankrate's test of earnings, STEPPING STONES COMMUNITY scored 8 out of a possible 30, coming in below 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, 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.