Safe and Sound

CREDIT UNION OF EMPORIA

EMPORIA, KS
5
Star Rating
CREDIT UNION OF EMPORIA is an NCUA-insured credit union founded in 1953 and currently headquartered in EMPORIA, KS. The credit union holds $22.4 million in assets, according to December 31, 2017, regulatory filings.

With 6 full-time employees, the credit union currently holds loans and leases worth $11.5 million. CREDIT UNION OF EMPORIA's 3,349 members currently have $19.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CREDIT UNION OF EMPORIA exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three key criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and as protection for members when a credit union is experiencing financial instability. Therefore, an institution's level of capital is a key measurement of its financial resilience. When it comes to safety and soundness, more capital is preferred.

CREDIT UNION OF EMPORIA achieved a score of 18 out of a possible 30 points on our test to measure capital adequacy, exceeding the national average of 15.65.

CREDIT UNION OF EMPORIA appears to be more resilient than its peers, with a capitalization ratio of 18.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

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

A credit union with extensive holdings of these types of assets could eventually have to use capital to cover losses, shrinking its cushion of equity. 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 failure in the future.

On Bankrate's asset quality test, CREDIT UNION OF EMPORIA scored 40 out of a possible 40 points, above the national average of 38.09 points.

A below-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

A credit union's earnings performance affects its safety and soundness. Earnings can be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, likely making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money have less ability to do those things.

CREDIT UNION OF EMPORIA scored 12 out of a possible 30 on Bankrate's earnings test, beating the national average of 10.11.

One sign that CREDIT UNION OF EMPORIA is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, better than the average for all credit unions.

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.