Safe and Sound

MORTON

SOUTH HUTCHINSO, KS
5
Star Rating
Founded in 1941, MORTON is an NCUA-insured credit union based in SOUTH HUTCHINSO, KS. Regulatory filings show the credit union having $4.1 million in assets, as of December 31, 2017.

Thanks to the work of 4 full-time employees, the credit union holds loans and leases worth $2.9 million. Its 871 members currently have $3.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MORTON exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three major criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of an institution's financial fortitude. It works as a cushion against losses and provides protection for members when a credit union is experiencing economic instability. When it comes to safety and soundness, the more capital, the better.

MORTON achieved a score of 20 out of a possible 30 points on our test to measure capital adequacy, beating out the national average of 15.65.

MORTON had a capitalization ratio of 20.00 percent in our test, better than the average for all credit unions, an indication that it could be more resilient in a crisis than its peers.

Asset Quality Score

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

A credit union with lots of these types of assets may eventually be forced 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 no longer earning interest for the credit union, pushing down earnings and increasing the chances of a future failure.

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

The credit union's ratio of troubled assets was 0.00 percent in our test, beneath the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. A credit union can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, potentially making the credit union better able to withstand financial shocks. Credit unions that are losing money, however, are less able to do those things.

MORTON scored 16 out of a possible 30 on Bankrate's earnings test, above the national average of 10.11.

MORTON 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.