Safe and Sound

CAPITAL EDUCATORS

MERIDIAN, ID
4
Star Rating
CAPITAL EDUCATORS is an NCUA-insured credit union started in 1936 and currently based in MERIDIAN, ID. Regulatory filings show the credit union having $597.1 million in assets, as of June 30, 2017.

Members have $529.1 million on deposit tended by 180 full-time employees. With that footprint, the credit union has amassed loans and leases worth $529.1 million. Its 72,456 members currently have $498.3 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, CAPITAL EDUCATORS 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 important criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial resilience, capital is valuable. It acts as a cushion against losses and as protection for members during times of financial trouble for the credit union. From a safety and soundness perspective, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, CAPITAL EDUCATORS received a score of 4 out of a possible 30 points, failing to reach the national average of 15.26.

CAPITAL EDUCATORS's capitalization ratio of 7.00 percent in our test was lower than the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid loans.

A credit union with extensive holdings of these kinds of assets may eventually have to use capital to cover losses, cutting down on its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in lower earnings and potentially more risk of a failure in the future.

CAPITAL EDUCATORS scored 36 out of a possible 40 points on Bankrate's asset quality test, less than the national average of 38.15.

The credit union's ratio of problem assets was 13.00 percent in our test, greater than the national average and a potential cause for concern.

Earnings score

A credit union's profitability affects its long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or use them to address problematic loans, likely making the credit union more resilient in tough times. Obviously, credit unions that are losing money have less ability to do those things.

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

One indication that CAPITAL EDUCATORS is outperforming its peers in this area was its earnings ratio of 10.00 percent in our test, above the average for all credit unions.

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.