Safe and Sound

CREDIT UNION OF DODGE CITY

DODGE CITY, KS
4
Star Rating
Founded in 1940, CREDIT UNION OF DODGE CITY is an NCUA-insured credit union based in DODGE CITY, KS. As of December 31, 2017, the credit union held assets of $70.7 million.

Thanks to the work of 32 full-time employees, the credit union has amassed loans and leases worth $55.7 million. Its 12,401 members currently have $60.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CREDIT UNION OF DODGE CITY 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 evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members when a credit union is struggling financially. It follows then that a credit union's level of capital is a valuable measurement of its financial resilience. From a safety and soundness perspective, the higher the capital, the better.

CREDIT UNION OF DODGE CITY received a score of 10 out of a possible 30 points on our test to measure capital adequacy, lower than the national average of 15.65.

CREDIT UNION OF DODGE CITY appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 10.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

This test is intended to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid loans.

A credit union with lots of these types of assets may eventually be forced to use capital to absorb losses, diminishing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in diminished earnings and potentially more risk of a failure in the future.

CREDIT UNION OF DODGE CITY 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, below the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. Earnings may be retained by the credit union, expanding its capital buffer, or be used to deal with problematic loans, likely making the credit union better able to withstand economic trouble. Obviously, credit unions that are losing money have less ability to do those things.

CREDIT UNION OF DODGE CITY scored 14 out of a possible 30 on Bankrate's test of earnings, above the national average of 10.11.

CREDIT UNION OF DODGE CITY had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting 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.