Safe and Sound

KANSAS STATE UNIVERSITY

MANHATTAN, KS
4
Star Rating
Manhattan, KS-based KANSAS STATE UNIVERSITY is an NCUA-insured credit union started in 1946. Regulatory filings show the credit union having assets of $83.7 million, as of December 31, 2017.

Thanks to the work of 25 full-time employees, the credit union holds loans and leases worth $53.6 million. Its 8,798 members currently have $74.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, KANSAS STATE UNIVERSITY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three major criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and as protection for members when a credit union is struggling financially. It follows then that a credit union's level of capital is a key measurement of its financial strength. When looking at safety and soundness, the higher the capital, the better.

KANSAS STATE UNIVERSITY received a score of 10 out of a possible 30 points on our test to measure capital adequacy, below the national average of 15.65.

KANSAS STATE UNIVERSITY appears to be weaker than its peers in this area, with a capitalization ratio of 10.00 percent in our test, below the average for all credit unions.

Asset Quality Score

This test's purpose is to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as unpaid mortgages.

Having lots of these kinds of assets means a credit union may have to use capital to absorb losses, shrinking its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, diminishing earnings and elevating the chances of a failure in the future.

On Bankrate's test of asset quality, KANSAS STATE UNIVERSITY scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand economic trouble. However, credit unions that are losing money have less ability to do those things.

On Bankrate's earnings test, KANSAS STATE UNIVERSITY scored 10 out of a possible 30, below the national average of 10.11.

KANSAS STATE UNIVERSITY had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's beating 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.