Safe and Sound

HOWARD COUNTY SCHOOL EM

Kokomo, IN
4
Star Rating
Founded in 1964, HOWARD COUNTY SCHOOL EM is an NCUA-insured credit union based in KOKOMO, IN. The credit union holds assets of $31.7 million, according to December 31, 2017, regulatory filings.

With 3 full-time employees, the credit union has amassed loans and leases worth $9.6 million. HOWARD COUNTY SCHOOL EM's 2,753 members currently have $27.8 million in shares with the credit union.

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

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides protection for members when a credit union is experiencing financial trouble. It follows then that a credit union's level of capital is an important measurement of its financial resilience. From a safety and soundness perspective, the higher the capital, the better.

HOWARD COUNTY SCHOOL EM did better than the national average of 15.65 points on our test to measure capital adequacy, racking up 16 out of a possible 30 points.

HOWARD COUNTY SCHOOL EM had a capitalization ratio of 16.00 percent in our test, equal to the average for all credit unions, suggesting that it's right in line with its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as past-due mortgages.

Having extensive holdings of these kinds of assets could eventually require a credit union to use capital to cover 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 money, resulting in reduced earnings and potentially more risk of a future failure.

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

The credit union's ratio of problem assets was 0.00 percent in our test, beneath the national average and suggestive of superior financial strength compared to 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, expanding its capital buffer, or be used to address problematic loans, likely making the credit union more resilient in tough times. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's test of earnings, HOWARD COUNTY SCHOOL EM scored 6 out of a possible 30, below the national average of 10.11.

One sign that the credit union is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.