Safe and Sound

SIMPLICITY

Marshfield, WI
4
Star Rating
SIMPLICITY is an NCUA-insured credit union founded in 1949 and currently headquartered in Marshfield, WI. The credit union has assets of $243.7 million, according to June 30, 2017, regulatory filings.

Thanks to the efforts of 64 full-time employees, the credit union currently holds loans and leases worth $158.6 million. SIMPLICITY's 23,692 members currently have $214.4 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, SIMPLICITY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired 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

Capital acts as a cushion against losses and as protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial fortitude, capital is crucial. From a safety and soundness perspective, the more capital, the better.

On our test to measure capital adequacy, SIMPLICITY received a score of 12 out of a possible 30 points, coming in below the national average of 15.26.

SIMPLICITY's capitalization ratio of 10.00 percent in our test was below the average for all credit unions, a sign that it could be less resilient in a crisis than its peers.

Asset Quality Score

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

A credit union with lots of these types of assets could eventually have 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 diminished earnings and potentially more risk of a failure in the future.

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

Troubled assets made up 6.00 percent of SIMPLICITY's total assets 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. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand financial shocks. Conversely, losses take away from a credit union's ability to do those things.

SIMPLICITY scored 16 out of a possible 30 on Bankrate's test of earnings, above the national average of 10.31.

The credit union had an earnings ratio of 7.00 percent in our test, above the average for all credit unions, a sign that it's outperforming 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.