WHAT IS
SAFE AND SOUND?
When it comes to measuring a credit union's financial stability, capital is crucial. It works as a bulwark against losses and as protection for members during times of economic trouble for the credit union. When it comes to safety and soundness, more capital is better.
SUNRISE FAMILY received a score of 8 out of a possible 30 points on our test to measure capital adequacy, failing to reach the national average of 15.65.
SUNRISE FAMILY appears to be weaker than its peers in this area, with a capitalization ratio of 8.00 percent in our test, worse than the average for all credit unions.
In this test, Bankrate tries to estimate the impact of problem assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.
A credit union with a large number of these types of assets could eventually have to use capital to cover losses, shrinking its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a failure in the future.
SUNRISE FAMILY scored 40 out of a possible 40 points on Bankrate's asset quality test, beating out the national average of 38.09.
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.
How successful a credit union is at earning money affects its long-term survivability. A credit union can retain its earnings, increasing its capital cushion, or use them to deal with problematic loans, potentially making the credit union better able to withstand economic trouble. Obviously, credit unions that are losing money are less able to do those things.
SUNRISE FAMILY scored 4 out of a possible 30 on Bankrate's earnings test, lower than the national average of 10.11.
One indication that SUNRISE FAMILY is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, above the average for all credit unions.
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.
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.