Safe and Sound

LINCOLN PUBLIC SCHOOL EMPLOYEES

LINCOLN, NE
4
Star Rating
LINCOLN PUBLIC SCHOOL EMPLOYEES is a LINCOLN, NE-based, NCUA-insured credit union founded in 1938. Regulatory filings show the credit union having assets of $47.5 million, as of December 31, 2017.

Members have $19.7 million on deposit tended by 5 full-time employees. With that footprint, the credit union currently holds loans and leases worth $19.7 million. LINCOLN PUBLIC SCHOOL EMPLOYEES's 3,391 members currently have $41.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LINCOLN PUBLIC SCHOOL EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three major criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and affords protection for members when a credit union is struggling financially. Therefore, a credit union's level of capital is an essential measurement of its financial resilience. From a safety and soundness perspective, more capital is preferred.

On our test to measure capital adequacy, LINCOLN PUBLIC SCHOOL EMPLOYEES scored 16 out of a possible 30 points, beating the national average of 15.65.

LINCOLN PUBLIC SCHOOL EMPLOYEES's capitalization ratio of 16.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

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

Having a large number of these types of assets means a credit union may eventually have to use capital to absorb losses, reducing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, reducing earnings and elevating the chances of a future failure.

LINCOLN PUBLIC SCHOOL EMPLOYEES scored 40 out of a possible 40 points on Bankrate's test of asset quality, above the national average of 38.09.

A lower-than-average ratio of problem 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 affects its long-term survivability. Earnings may be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, potentially making the credit union better able to withstand economic trouble. Losses, on the other hand, diminish a credit union's ability to do those things.

On Bankrate's earnings test, LINCOLN PUBLIC SCHOOL EMPLOYEES scored 10 out of a possible 30, failing to reach the national average of 10.11.

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