Safe and Sound

DILLON

Hutchinson, KS
5
Star Rating
DILLON is a Hutchinson, KS-based, NCUA-insured credit union dating back to 1958. The credit union has $37.3 million in assets, according to December 31, 2017, regulatory filings.

With 10 full-time employees, the credit union holds loans and leases worth $29.6 million. DILLON's 4,460 members currently have $30.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, DILLON exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three important criteria Bankrate used to score U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of an institution's financial fortitude. It acts as a buffer against losses and as protection for members during times of economic trouble for the credit union. When it comes to safety and soundness, more capital is better.

DILLON beat out the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, scoring 24 out of a possible 30 points.

DILLON's capitalization ratio of 24.00 percent in our test was above the average for all credit unions, an indication that it's more well prepared for financial trouble than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as unpaid mortgages.

Having lots of these kinds of assets means a credit union could have to use capital to cover losses, diminishing 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, diminishing earnings and increasing the risk of a failure in the future.

DILLON did better than the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

Troubled assets made up 0.00 percent of DILLON's total assets in our test, lower 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 safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, potentially making the credit union better prepared to withstand financial trouble. Losses, on the other hand, lessen a credit union's ability to do those things.

DILLON scored 6 out of a possible 30 on Bankrate's earnings test, less than the national average of 10.11.

One indication that DILLON is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.