Safe and Sound

OKLAHOMA EDUCATORS

OKLAHOMA CITY, OK
5
Star Rating
OKLAHOMA EDUCATORS is an OKLAHOMA CITY, OK-based, NCUA-insured credit union that opened its doors in 1960. Regulatory filings show the credit union having assets of $143.9 million, as of December 31, 2017.

Thanks to the efforts of 58 full-time employees, the credit union has amassed loans and leases worth $111.6 million. Its 13,078 members currently have $112.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, OKLAHOMA EDUCATORS exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major 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

When it comes to measuring an institution's financial fortitude, capital is useful. It acts as a bulwark against losses and affords protection for members when a credit union is experiencing economic trouble. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, OKLAHOMA EDUCATORS received a score of 10 out of a possible 30 points, failing to reach the national average of 15.65.

OKLAHOMA EDUCATORS appears to be weaker than its peers in this area, with a capitalization ratio of 10.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

This test's purpose is to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by problem 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 cover losses, shrinking 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, resulting in depressed earnings and potentially more risk of a failure in the future.

OKLAHOMA EDUCATORS exceeded the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

OKLAHOMA EDUCATORS'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 making money affects its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better able to withstand financial trouble. Obviously, credit unions that are losing money have less ability to do those things.

OKLAHOMA EDUCATORS exceeded the national average on Bankrate's test of earnings, achieving a score of 22 out of a possible 30.

One sign that OKLAHOMA EDUCATORS is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.