Safe and Sound

SCOTT

EDWARDSVILLE, IL
4
Star Rating
Started in 1943, SCOTT is an NCUA-insured credit union headquartered in EDWARDSVILLE, IL. Regulatory filings show the credit union having assets of $1.12 billion, as of June 30, 2017.

Thanks to the work of 236 full-time employees, the credit union has amassed loans and leases worth $888.8 million. SCOTT's 138,186 members currently have $1.00 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, SCOTT exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three important criteria Bankrate used to evaluate U.S. 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 fortitude. It acts as a bulwark against losses and as protection for members during times of financial instability for the credit union. When it comes to safety and soundness, the higher the capital, the better.

SCOTT 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.

SCOTT had a capitalization ratio of 9.00 percent in our test, less 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's purpose is 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 unpaid loans.

Having extensive holdings of these kinds of assets means a credit union could eventually have to use capital to cover losses, shrinking its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in lower earnings and potentially more risk of a failure in the future.

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

Troubled assets made up 6.00 percent of the credit union's total assets in our test, less than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better able to withstand financial shocks. Losses, on the other hand, take away from a credit union's ability to do those things.

SCOTT scored 18 out of a possible 30 on Bankrate's earnings test, above the national average of 10.31.

SCOTT had an earnings ratio of 10.00 percent in our test, higher than the average for all credit unions, suggesting that it's doing better than 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.