Safe and Sound

EDUCATIONAL COMMUNITY

SPRINGFIELD, MO
1
Star Rating
EDUCATIONAL COMMUNITY is an NCUA-insured credit union founded in 1938 and currently based in SPRINGFIELD, MO. The credit union holds $59.8 million in assets, according to December 31, 2017, regulatory filings.

Members have $32.3 million on deposit tended by 20 full-time employees. With that footprint, the credit union currently holds loans and leases worth $32.3 million. Its 8,259 members currently have $55.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, EDUCATIONAL COMMUNITY exhibited a significantly below-average condition, earning 1 out of 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 evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and as protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an a credit union's financial fortitude, capital is valuable. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, EDUCATIONAL COMMUNITY received a score of 6 out of a possible 30 points, below the national average of 15.65.

EDUCATIONAL COMMUNITY had a capitalization ratio of 6.00 percent in our test, less than the average for all credit unions, a sign that it's less well prepared for financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of problem assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with large numbers of these types of assets could eventually be forced to use capital to cover losses, shrinking its cushion 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, resulting in diminished earnings and potentially more risk of a failure in the future.

EDUCATIONAL COMMUNITY came in below the national average of 38.09 on Bankrate's test of asset quality, racking up 28 out of a possible 40 points .

Troubled assets made up 0.00 percent of EDUCATIONAL COMMUNITY's total assets in our test, beneath the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the credit union better prepared to withstand financial shocks. However, credit unions that are losing money have less ability to do those things.

EDUCATIONAL COMMUNITY scored 0 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 10.11.

One indication that EDUCATIONAL COMMUNITY is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, higher than 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.