Safe and Sound

SUGAR GROWERS

Santa Rosa, TX
5
Star Rating
SUGAR GROWERS is an NCUA-insured credit union founded in 1975 and currently headquartered in Santa Rosa, TX. The credit union has assets of $2.4 million, according to December 31, 2017, regulatory filings.

The credit union has amassed loans and leases worth $535,220. SUGAR GROWERS's 395 members currently have $1.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SUGAR GROWERS exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to grade 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 cushion against losses and affords protection for members when a credit union is experiencing economic trouble. Therefore, when it comes to measuring an a credit union's financial fortitude, capital is valuable. From a safety and soundness perspective, more capital is better.

SUGAR GROWERS beat out the national average of 15.65 points on our test to measure capital adequacy, receiving a score of 30 out of a possible 30 points.

SUGAR GROWERS appears to be more resilient than its peers, with a capitalization ratio of 30.00 percent in our test, above the average for all credit unions.

Asset Quality Score

This test's purpose is to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid mortgages.

Having large numbers of these kinds of assets could eventually force a credit union to use capital to absorb losses, decreasing its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, reducing earnings and elevating the risk of a future failure.

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

A lower-than-average ratio of problem 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 affects its long-term survivability. Earnings can be retained by the credit union, boosting its capital cushion, or be used to address problematic loans, likely making the credit union better able to withstand economic shocks. Conversely, losses diminish a credit union's ability to do those things.

SUGAR GROWERS scored 8 out of a possible 30 on Bankrate's test of earnings, below the national average of 10.11.

One indication that SUGAR GROWERS is doing better than 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.