Safe and Sound

CONNECTIONS

POCATELLO, ID
3
Star Rating
CONNECTIONS is an NCUA-insured credit union started in 1937 and currently headquartered in POCATELLO, ID. Regulatory filings show the credit union having $154.0 million in assets, as of June 30, 2017.

With 65 full-time employees, the credit union holds loans and leases worth $109.3 million. CONNECTIONS's 19,967 members currently have $141.2 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, CONNECTIONS exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did 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 is a valuable measurement of an institution's financial resilience. It acts as a buffer against losses and provides protection for members when a credit union is experiencing financial trouble. From a safety and soundness perspective, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, CONNECTIONS received a score of 8 out of a possible 30 points, less than the national average of 15.26.

CONNECTIONS 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.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of problem assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

Having a large number of these kinds of assets may eventually require a credit union to use capital to absorb losses, cutting down on its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, diminishing earnings and increasing the chances of a failure in the future.

On Bankrate's asset quality test, CONNECTIONS scored 40 out of a possible 40 points, beating out the national average of 38.15 points.

Troubled assets made up 6.00 percent of CONNECTIONS's total assets in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. A credit union can retain its earnings, boosting its capital cushion, or use them to address problematic loans, potentially making the credit union better able to withstand economic trouble. Conversely, losses take away from a credit union's ability to do those things.

CONNECTIONS received below-average marks on Bankrate's test of earnings, achieving a score of 6 out of a possible 30.

One indication that CONNECTIONS is outperforming its peers in this area was its earnings ratio of 2.00 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.