Safe and Sound

DU PONT EMPLOYEES

Fort Madison, IA
5
Star Rating
Fort Madison, IA-based DU PONT EMPLOYEES is an NCUA-insured credit union started in 1949. As of December 31, 2017, the credit union held assets of $3.8 million.

The credit union has amassed loans and leases worth $2.4 million. DU PONT EMPLOYEES's 493 members currently have $3.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, DU PONT EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three important criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is crucial. It works as a buffer against losses and provides protection for members during times of economic instability for the credit union. When it comes to safety and soundness, the higher the capital, the better.

DU PONT EMPLOYEES scored above 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.

DU PONT EMPLOYEES's capitalization ratio of 24.00 percent in our test was above the average for all credit unions, an indication that it's stronger than its peers.

Asset Quality Score

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

Having a large number of these kinds of assets means a credit union may eventually have to use capital to absorb losses, cutting down on its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, reducing earnings and increasing the risk of a failure in the future.

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

Earnings score

A credit union's profitability affects its long-term survivability. Earnings can be retained by the credit union, expanding its capital buffer, or be used to deal with problematic loans, potentially making the credit union better prepared to withstand economic trouble. Conversely, losses lessen a credit union's ability to do those things.

DU PONT EMPLOYEES fell short of the national average on Bankrate's test of earnings, achieving a score of 6 out of a possible 30.

DU PONT EMPLOYEES had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting 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.