Safe and Sound

CONSUMER'S

Gregory, SD
4
Star Rating
Founded in 1977, CONSUMER'S is an NCUA-insured credit union based in Gregory, SD. The credit union holds $11.4 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the work of 4 full-time employees, the credit union holds loans and leases worth $8.1 million. CONSUMER'S's 1,301 members currently have $10.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CONSUMER'S exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major 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 key measurement of an institution's financial resilience. It works as a cushion against losses and provides protection for members when a credit union is struggling financially. When it comes to safety and soundness, more capital is better.

CONSUMER'S received a score of 10 out of a possible 30 points on our test to measure capital adequacy, below the national average of 15.65.

CONSUMER'S had a capitalization ratio of 10.00 percent in our test, lower than the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as past-due loans.

A credit union with large numbers of these types of assets could eventually be forced to use capital to absorb losses, cutting down on its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, diminishing earnings and elevating the chances of a future failure.

CONSUMER'S fell short of the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

Troubled assets made up 0.00 percent of the credit union's total assets in our test, less than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. Earnings can be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, likely making the credit union better able to withstand economic shocks. Losses, on the other hand, lessen a credit union's ability to do those things.

CONSUMER'S did above-average on Bankrate's test of earnings, achieving a score of 20 out of a possible 30.

CONSUMER'S had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, an indication 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.