Safe and Sound

MARION AND POLK SCHOOLS

Salem, OR
5
Star Rating
MARION AND POLK SCHOOLS is a Salem, OR-based, NCUA-insured credit union started in 1936. Regulatory filings show the credit union having $690.4 million in assets, as of December 31, 2017.

Members have $542.1 million on deposit tended by 223 full-time employees. With that footprint, the credit union currently holds loans and leases worth $542.1 million. MARION AND POLK SCHOOLS's 59,794 members currently have $620.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MARION AND POLK SCHOOLS exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three important criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and as protection for members when a credit union is experiencing economic instability. It follows then that a credit union's level of capital is a valuable measurement of its financial strength. When it comes to safety and soundness, the higher the capital, the better.

MARION AND POLK SCHOOLS received a score of 8 out of a possible 30 points on our test to measure capital adequacy, falling short of the national average of 15.65.

MARION AND POLK SCHOOLS appears to be weaker than its peers in this area, with a capitalization ratio of 8.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

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

Having extensive holdings of these types of assets means a credit union could have to use capital to cover losses, cutting down on 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, resulting in lower earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, MARION AND POLK SCHOOLS scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

Troubled assets made up 0.00 percent of MARION AND POLK SCHOOLS's total assets in our test, beneath 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 has an effect on its safety and soundness. A credit union can retain its earnings, boosting its capital cushion, or use them to address problematic loans, likely making the credit union better able to withstand financial trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

MARION AND POLK SCHOOLS beat the national average on Bankrate's test of earnings, achieving a score of 24 out of a possible 30.

One indication that MARION AND POLK SCHOOLS is doing better than 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.