Safe and Sound

SYLVANIA AREA

SYLVANIA, OH
3
Star Rating
SYLVANIA AREA is a SYLVANIA, OH-based, NCUA-insured credit union started in 1966. As of December 31, 2017, the credit union had assets of $21.0 million.

Thanks to the work of 5 full-time employees, the credit union holds loans and leases worth $6.3 million. Its 2,074 members currently have $19.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SYLVANIA AREA exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three major criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of a credit union's financial resilience. It acts as a buffer against losses and provides protection for members when a credit union is struggling financially. From a safety and soundness perspective, more capital is preferred.

SYLVANIA AREA received a score of 10 out of a possible 30 points on our test to measure capital adequacy, lower than the national average of 15.65.

SYLVANIA AREA had a capitalization ratio of 10.00 percent in our test, lower than the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

Bankrate uses this test to estimate the effect of problem assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

A credit union with lots of these types of assets may eventually be forced to use capital to cover losses, decreasing 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 money, resulting in depressed earnings and potentially more risk of a future failure.

SYLVANIA AREA scored 40 out of a possible 40 points on Bankrate's test of asset quality, above the national average of 38.09.

SYLVANIA AREA's ratio of problem assets was 0.00 percent in our test, lower than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. Earnings can be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, likely making the credit union better prepared to withstand economic trouble. However, credit unions that are losing money have less ability to do those things.

SYLVANIA AREA did below-average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

SYLVANIA AREA had an earnings ratio of 0.00 percent in our test, above 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.