Safe and Sound

SIMPLY SERVICE

Belle Fourche, SD
4
Star Rating
Founded in 1953, SIMPLY SERVICE is an NCUA-insured credit union based in Belle Fourche, SD. Regulatory filings show the credit union having assets of $14.5 million, as of June 30, 2017.

With 6 full-time employees, the credit union has amassed loans and leases worth $6.0 million. SIMPLY SERVICE's 2,428 members currently have $12.4 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, SIMPLY SERVICE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three key criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is important. It works as a buffer against losses and provides protection for members during periods of financial trouble for the credit union. From a safety and soundness perspective, more capital is better.

SIMPLY SERVICE racked up 20 out of a possible 30 points on our test to measure capital adequacy, better than the national average of 15.26.

SIMPLY SERVICE's capitalization ratio of 14.00 percent in our test was better than the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

Asset Quality Score

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

Having a large number of these kinds of assets means a credit union may have to use capital to absorb losses, shrinking its buffer of equity. 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 depressed earnings and potentially more risk of a future failure.

SIMPLY SERVICE exceeded the national average of 38.15 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings may be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, likely making the credit union better able to withstand economic shocks. Conversely, losses take away from a credit union's ability to do those things.

SIMPLY SERVICE fell behind the national average on Bankrate's test of earnings, achieving a score of 2 out of a possible 30.

SIMPLY SERVICE had an earnings ratio of 1.00 percent in our test, equal to the average for all credit unions, suggesting that it's right in line with 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.