Safe and Sound

CONNEXUS

WAUSAU, WI
5
Star Rating
Founded in 1935, CONNEXUS is an NCUA-insured credit union based in WAUSAU, WI. As of June 30, 2017, the credit union had assets of $1.73 billion.

Members have $1.34 billion on deposit tended by 246 full-time employees. With that footprint, the credit union has amassed loans and leases worth $1.34 billion. Its 333,363 members currently have $1.36 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, CONNEXUS exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to grade U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for members when a credit union is experiencing financial instability. Therefore, a credit union's level of capital is a useful measurement of its financial resilience. From a safety and soundness perspective, the more capital, the better.

CONNEXUS received a score of 10 out of a possible 30 points on our test to measure capital adequacy, lower than the national average of 15.26.

CONNEXUS had a capitalization ratio of 9.00 percent in our test, less than the average for all credit unions, an indication 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 reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as past-due mortgages.

A credit union with lots of these kinds of assets could eventually be required to use capital to absorb losses, reducing its equity buffer. 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 lower earnings and potentially more risk of a future failure.

CONNEXUS scored 40 out of a possible 40 points on Bankrate's test of asset quality, above the national average of 38.15.

The credit union's ratio of problem assets was 7.00 percent in our test, the same as the national average.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. Earnings can be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses diminish a credit union's ability to do those things.

CONNEXUS scored 22 out of a possible 30 on Bankrate's earnings test, beating out the national average of 10.31.

One sign that CONNEXUS is running ahead of its peers in this area was its earnings ratio of 14.00 percent in our test, better than 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.