Safe and Sound

GOLDEN PLAINS

Garden City, KS
4
Star Rating
Garden City, KS-based GOLDEN PLAINS is an NCUA-insured credit union started in 1951. Regulatory filings show the credit union having assets of $605.8 million, as of December 31, 2017.

Members have $546.4 million on deposit tended by 212 full-time employees. With that footprint, the credit union currently holds loans and leases worth $546.4 million. Its 76,181 members currently have $509.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, GOLDEN PLAINS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for 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?

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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 experiencing economic trouble. Therefore, when it comes to measuring an an institution's financial fortitude, capital is crucial. When it comes to safety and soundness, more capital is better.

On our test to measure the adequacy of a credit union's capital, GOLDEN PLAINS received a score of 12 out of a possible 30 points, coming in below the national average of 15.65.

GOLDEN PLAINS appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 12.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the impact of troubled assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

A credit union with large numbers of these kinds of assets may eventually have to use capital to absorb losses, decreasing its equity cushion. 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, pushing down earnings and elevating the chances of a future failure.

On Bankrate's asset quality test, GOLDEN PLAINS scored 36 out of a possible 40 points, below the national average of 38.09 points.

A below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to 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, expanding its capital cushion, or be used to deal with problematic loans, likely making the credit union better prepared to withstand financial trouble. Credit unions that are losing money, however, are less able to do those things.

GOLDEN PLAINS received below-average marks on Bankrate's test of earnings, achieving a score of 10 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign 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.