Safe and Sound

SUNCOMP EMPLOYEES

BRISTOL, VA
5
Star Rating
SUNCOMP EMPLOYEES is an NCUA-insured credit union started in 1976 and currently based in BRISTOL, VA. Regulatory filings show the credit union having assets of $5.3 million, as of December 31, 2017.

SUNCOMP EMPLOYEES's 692 members currently have $1.7 million in shares with the credit union. With that footprint, the credit union has amassed loans and leases worth $3.5 million.

Overall, Bankrate believes that, as of December 31, 2017, SUNCOMP EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three major criteria Bankrate used to grade 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 buffer against losses and provides protection for members when a credit union is struggling financially. It follows then that an institution's level of capital is a useful measurement of its financial resilience. From a safety and soundness perspective, the more capital, the better.

On our test to measure capital adequacy, SUNCOMP EMPLOYEES racked up 30 out of a possible 30 points, above the national average of 15.65.

SUNCOMP EMPLOYEES appears to be stronger than its peers, with a capitalization ratio of 30.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

This test is intended to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as past-due loans.

A credit union with a large number of these types of assets may eventually be required to use capital to absorb losses, cutting down on its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in depressed earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, SUNCOMP EMPLOYEES scored 36 out of a possible 40 points, failing to reach the national average of 38.09 points.

A below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance 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 financial trouble. Credit unions that are losing money, however, are less able to do those things.

SUNCOMP EMPLOYEES scored 10 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 10.11.

SUNCOMP EMPLOYEES had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication that it's beating 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.