Safe and Sound

CENTRAL KANSAS

HUTCHINSON, KS
2
Star Rating
Founded in 1937, CENTRAL KANSAS is an NCUA-insured credit union headquartered in HUTCHINSON, KS. Regulatory filings show the credit union having assets of $36.2 million, as of December 31, 2017.

Thanks to the work of 14 full-time employees, the credit union holds loans and leases worth $21.5 million. Its 6,041 members currently have $33.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CENTRAL KANSAS exhibited a below-average condition, earning 2 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.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial resilience, capital is valuable. It acts as a cushion against losses and as protection for members when a credit union is struggling financially. From a safety and soundness perspective, the higher the capital, the better.

CENTRAL KANSAS fell short of the national average of 15.65 on our test to measure capital adequacy, racking up 4 out of a possible 30 points.

CENTRAL KANSAS had a capitalization ratio of 4.00 percent in our test, worse than the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

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

A credit union with extensive holdings of these kinds of assets may eventually be forced to use capital to absorb losses, cutting down on 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 interest for the credit union, resulting in depressed earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, CENTRAL KANSAS scored 40 out of a possible 40 points, above the national average of 38.09 points.

Troubled assets made up 0.00 percent of CENTRAL KANSAS's total assets in our test, lower than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance has an effect on its safety and soundness. Earnings may be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in tough times. Conversely, losses reduce a credit union's ability to do those things.

CENTRAL KANSAS scored 0 out of a possible 30 on Bankrate's earnings test, lower than the national average of 10.11.

CENTRAL KANSAS had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's running ahead of 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.