Safe and Sound

MINOT AREA SCHOOLS

Minot, ND
3
Star Rating
MINOT AREA SCHOOLS is a Minot, ND-based, NCUA-insured credit union that opened its doors in 1953. The credit union has $10.5 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 2 full-time employees, the credit union has amassed loans and leases worth $3.9 million. MINOT AREA SCHOOLS's 1,194 members currently have $9.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MINOT AREA SCHOOLS exhibited a generally satisfactory condition, earning 3 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 grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is key. It works as a cushion against losses and as protection for members during periods of financial instability for the credit union. From a safety and soundness perspective, the more capital, the better.

MINOT AREA SCHOOLS came in below the national average of 15.65 on our test to measure capital adequacy, receiving a score of 6 out of a possible 30 points.

MINOT AREA SCHOOLS appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 6.00 percent in our test, below the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the effect of troubled assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

Having a large number of these types of assets suggests a credit union may eventually have to use capital to cover losses, decreasing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, pushing down earnings and increasing the chances of a future failure.

MINOT AREA SCHOOLS scored 40 out of a possible 40 points on Bankrate's test of asset quality, exceeding the national average of 38.09.

Earnings score

How successful a credit union is at earning money has an effect on 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 financial shocks. Credit unions that are losing money, however, have less ability to do those things.

MINOT AREA SCHOOLS scored 6 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 10.11.

MINOT AREA SCHOOLS had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, an indication that it's outperforming 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.