Safe and Sound

DISTRICT 8 HIGHWAY EMPLOYEES

Springfield, MO
5
Star Rating
Springfield, MO-based DISTRICT 8 HIGHWAY EMPLOYEES is an NCUA-insured credit union started in 1955. As of December 31, 2017, the credit union held assets of $17.5 million.

With 2 full-time employees, the credit union holds loans and leases worth $8.3 million. DISTRICT 8 HIGHWAY EMPLOYEES's 2,156 members currently have $14.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, DISTRICT 8 HIGHWAY EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three key criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of an institution's financial resilience. It works as a buffer against losses and affords protection for members during periods of economic trouble for the credit union. When it comes to safety and soundness, the higher the capital, the better.

DISTRICT 8 HIGHWAY EMPLOYEES scored above the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, scoring 22 out of a possible 30 points.

DISTRICT 8 HIGHWAY EMPLOYEES's capitalization ratio of 22.00 percent in our test was higher than the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of troubled assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.

Having a large number of these kinds of assets could eventually force a credit union to use capital to absorb losses, diminishing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, reducing earnings and increasing the chances of a failure in the future.

DISTRICT 8 HIGHWAY EMPLOYEES exceeded the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

DISTRICT 8 HIGHWAY EMPLOYEES's ratio of problem assets was 0.00 percent in our test, below the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing 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.

DISTRICT 8 HIGHWAY EMPLOYEES beat the national average on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.

DISTRICT 8 HIGHWAY EMPLOYEES had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, an indication 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.