Safe and Sound

SUNLAND

MARIANNA, FL
4
Star Rating
MARIANNA, FL-based SUNLAND is an NCUA-insured credit union founded in 1964. As of December 31, 2017, the credit union held assets of $2.1 million.

The credit union has amassed loans and leases worth $1.3 million. SUNLAND's 957 members currently have $1.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SUNLAND exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three key criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and as protection for members when a credit union is experiencing economic instability. It follows then that an institution's level of capital is an important measurement of its financial resilience. When it comes to safety and soundness, more capital is preferred.

On our test to measure capital adequacy, SUNLAND scored 30 out of a possible 30 points, exceeding the national average of 15.65.

SUNLAND's capitalization ratio of 30.00 percent in our test was above the average for all credit unions, an indication that it's on more solid financial footing than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as past-due mortgages.

A credit union with a large number of these types of assets could eventually have to use capital to cover losses, shrinking 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 interest for the credit union, decreasing earnings and elevating the risk of a future failure.

SUNLAND scored 32 out of a possible 40 points on Bankrate's asset quality test, below the national average of 38.09.

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

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand economic trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's test of earnings, SUNLAND scored 6 out of a possible 30, less than the national average of 10.11.

SUNLAND had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's outperforming 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.