Safe and Sound

SUN

HOLLYWOOD, FL
4
Star Rating
SUN is an NCUA-insured credit union founded in 1991 and currently based in HOLLYWOOD, FL. As of December 31, 2017, the credit union had assets of $84.3 million.

Members have $30.7 million on deposit tended by 19 full-time employees. With that footprint, the credit union currently holds loans and leases worth $30.7 million. Its 6,642 members currently have $74.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SUN exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions.

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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 experiencing financial trouble. Therefore, an institution's level of capital is a crucial measurement of its financial resilience. When looking at safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, SUN received a score of 12 out of a possible 30 points, coming in below the national average of 15.65.

SUN appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 12.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

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

Having a large number of these types of assets may eventually force a credit union 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 thus aren't earning interest for the credit union, resulting in diminished earnings and potentially more risk of a future failure.

SUN did better than the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

The credit union's ratio of problem assets was 0.00 percent in our test, less than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or use them to deal with problematic loans, potentially making the credit union better able to withstand economic trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

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

SUN had an earnings ratio of 0.00 percent in our test, higher than 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.