Safe and Sound

ELLIS

Ellis, KS
4
Star Rating
Started in 1952, ELLIS is an NCUA-insured credit union headquartered in Ellis, KS. Regulatory filings show the credit union having assets of $5.1 million, as of December 31, 2017.

Its 781 members currently have $4.1 million in shares with the credit union. With that footprint, the credit union has amassed loans and leases worth $2.8 million.

Overall, Bankrate believes that, as of December 31, 2017, ELLIS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three important criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and as protection for members during periods of economic instability for the credit union. It follows then that when it comes to measuring an an institution's financial stability, capital is crucial. When it comes to safety and soundness, more capital is better.

On our test to measure capital adequacy, ELLIS racked up 28 out of a possible 30 points, exceeding the national average of 15.65.

ELLIS appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 28.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

This test's purpose is to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as unpaid mortgages.

Having extensive holdings of these types of assets may eventually force a credit union to use capital to cover losses, cutting down on its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, pushing down earnings and elevating the risk of a failure in the future.

On Bankrate's asset quality test, ELLIS scored 36 out of a possible 40 points, failing to reach the national average of 38.09 points.

The credit union's ratio of problem assets was 0.00 percent in our test, beneath the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. A credit union can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, likely making the credit union better prepared to withstand financial shocks. Conversely, losses lessen a credit union's ability to do those things.

ELLIS underperformed the average on Bankrate's test of earnings, achieving a score of 4 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's outperforming 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.