Safe and Sound

EDISON

KANSAS CITY, MO
4
Star Rating
Founded in 1928, EDISON is an NCUA-insured credit union based in KANSAS CITY, MO. As of December 31, 2017, the credit union held assets of $29.1 million.

Thanks to the efforts of 8 full-time employees, the credit union has amassed loans and leases worth $12.3 million. EDISON's 3,934 members currently have $25.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, EDISON exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major criteria Bankrate used to evaluate American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial resilience, capital is essential. It acts as a buffer against losses and as protection for members when a credit union is experiencing economic trouble. When it comes to safety and soundness, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, EDISON received a score of 12 out of a possible 30 points, falling short of the national average of 15.65.

EDISON's capitalization ratio of 12.00 percent in our test was worse than the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

A credit union with extensive holdings of these types of assets could eventually have to use capital to absorb losses, decreasing its equity buffer. 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, reducing earnings and increasing the risk of a failure in the future.

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

EDISON's ratio of troubled 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

A credit union's profitability has an effect on its long-term survivability. Earnings can be retained by the credit union, expanding its capital buffer, or be used to deal with problematic loans, likely making the credit union better able to withstand economic shocks. However, credit unions that are losing money are less able to do those things.

EDISON scored 6 out of a possible 30 on Bankrate's earnings test, falling short of the national average of 10.11.

EDISON had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign that it's beating 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.