Safe and Sound

GROUP SERVICE EMPLOYEES

Tulsa, OK
4
Star Rating
Tulsa, OK-based GROUP SERVICE EMPLOYEES is an NCUA-insured credit union started in 1956. The credit union has assets of $11.1 million, according to June 30, 2017, regulatory filings.

With 4 full-time employees, the credit union currently holds loans and leases worth $10.2 million. GROUP SERVICE EMPLOYEES's 1,843 members currently have $9.1 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, GROUP SERVICE EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of an institution's financial resilience. It works as a buffer against losses and as protection for members when a credit union is struggling financially. When it comes to safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, GROUP SERVICE EMPLOYEES scored 24 out of a possible 30 points, exceeding the national average of 15.26.

GROUP SERVICE EMPLOYEES's capitalization ratio of 17.00 percent in our test was higher than the average for all credit unions, a sign that it's on more solid financial footing than its peers.

Asset Quality Score

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

Having lots of these kinds of assets means a credit union could eventually have to use capital to absorb losses, shrinking its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in reduced earnings and potentially more risk of a failure in the future.

GROUP SERVICE EMPLOYEES scored 40 out of a possible 40 points on Bankrate's asset quality test, beating the national average of 38.15.

A below-average ratio of troubled assets of 3.00 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 affects its safety and soundness. Earnings may be retained by the credit union, expanding its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in tough times. Losses, on the other hand, reduce a credit union's ability to do those things.

GROUP SERVICE EMPLOYEES scored 0 out of a possible 30 on Bankrate's earnings test, below the national average of 10.31.

One sign that GROUP SERVICE EMPLOYEES is performing behind its peers in this area was its earnings ratio of -2.00 percent in our test, less 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.