Safe and Sound

EDDYVILLE COOPERATIVE

Eddyville, NE
5
Star Rating
EDDYVILLE COOPERATIVE is an Eddyville, NE-based, NCUA-insured credit union founded in 1984. Regulatory filings show the credit union having $2.0 million in assets, as of December 31, 2017.

Thanks to the efforts of 2 full-time employees, the credit union currently holds loans and leases worth $891,277. Its 192 members currently have $1.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, EDDYVILLE COOPERATIVE 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 major 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 works as a buffer against losses and as protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial strength, capital is essential. When it comes to safety and soundness, the more capital, the better.

EDDYVILLE COOPERATIVE did better than the national average of 15.65 points on our test to measure capital adequacy, scoring 24 out of a possible 30 points.

EDDYVILLE COOPERATIVE had a capitalization ratio of 24.00 percent in our test, higher than the average for all credit unions, suggesting 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 capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid mortgages.

Having large numbers of these kinds of assets could eventually force a credit union to use capital to cover losses, diminishing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, decreasing earnings and increasing the chances of a failure in the future.

On Bankrate's asset quality test, EDDYVILLE COOPERATIVE scored 40 out of a possible 40 points, better than the national average of 38.09 points.

EDDYVILLE COOPERATIVE's ratio of problem assets was 0.00 percent in our test, below the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. Earnings may be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, likely making the credit union more resilient in tough times. Credit unions that are losing money, however, have less ability to do those things.

EDDYVILLE COOPERATIVE exceeded the national average on Bankrate's test of earnings, achieving a score of 12 out of a possible 30.

EDDYVILLE COOPERATIVE had an earnings ratio of 0.00 percent in our test, better 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.