Safe and Sound

NEOSHO SCHOOL EMPLOYEES

Neosho, MO
4
Star Rating
Neosho, MO-based NEOSHO SCHOOL EMPLOYEES is an NCUA-insured credit union started in 1955. As of December 31, 2017, the credit union held assets of $2.4 million.

NEOSHO SCHOOL EMPLOYEES's 680 members currently have $2.1 million in shares with the credit union. With that footprint, the credit union currently holds loans and leases worth $1.4 million.

Overall, Bankrate believes that, as of December 31, 2017, NEOSHO SCHOOL EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three key criteria Bankrate used to score American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an an institution's financial strength, capital is essential. From a safety and soundness perspective, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, NEOSHO SCHOOL EMPLOYEES scored 18 out of a possible 30 points, better than the national average of 15.65.

NEOSHO SCHOOL EMPLOYEES's capitalization ratio of 18.00 percent in our test was higher than the average for all credit unions, suggesting that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

A credit union with a large number of these kinds of assets may eventually have to use capital to absorb losses, cutting down on its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a failure in the future.

NEOSHO SCHOOL EMPLOYEES fell below the national average of 38.09 on Bankrate's asset quality test, racking up 32 out of a possible 40 points .

NEOSHO SCHOOL EMPLOYEES's ratio of troubled assets was 0.00 percent in our test, beneath the national average and potentially indicative 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 economic shocks. Conversely, losses diminish a credit union's ability to do those things.

NEOSHO SCHOOL EMPLOYEES scored 8 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication 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.