Safe and Sound

SUPERIOR CREDIT UNION

Collegeville, PA
4
Star Rating
SUPERIOR CREDIT UNION is a Collegeville, PA-based, NCUA-insured credit union founded in 1956. The credit union holds $49.1 million in assets, according to December 31, 2017, regulatory filings.

With 15 full-time employees, the credit union holds loans and leases worth $35.3 million. Its 7,112 members currently have $45.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SUPERIOR CREDIT UNION 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 American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members when a credit union is experiencing economic trouble. It follows then that when it comes to measuring an a credit union's financial resilience, capital is important. When it comes to safety and soundness, the higher the capital, the better.

SUPERIOR CREDIT UNION fell below the national average of 15.65 on our test to measure capital adequacy, racking up 6 out of a possible 30 points.

SUPERIOR CREDIT UNION had a capitalization ratio of 6.00 percent in our test, worse than the average for all credit unions, a sign that it's on less solid financial footing than its peers.

Asset Quality Score

This test is intended to estimate 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 be forced to use capital to cover losses, reducing its cushion 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, resulting in diminished earnings and potentially more risk of a future failure.

SUPERIOR CREDIT UNION scored 32 out of a possible 40 points on Bankrate's test of asset quality, lower than the national average of 38.09.

Troubled assets made up 0.00 percent of SUPERIOR CREDIT UNION's total assets in our test, less than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. Earnings can be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in tough times. However, credit unions that are losing money have less ability to do those things.

SUPERIOR CREDIT UNION beat the national average on Bankrate's earnings test, achieving a score of 18 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting 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.