Safe and Sound

OSU INSTITUTE OF TECHNOLOGY

Okmulgee, OK
NR
Star Rating
OSU INSTITUTE OF TECHNOLOGY is an Okmulgee, OK-based, NCUA-insured credit union founded in 1963. The credit union has assets of $3.9 million, according to June 30, 2017, regulatory filings.

Its 661 members currently have $4.0 million in shares with the credit union. With that footprint, the credit union holds loans and leases worth $1.5 million.

Overall, Bankrate did not have enough information on this institution to give it a star rating. Keep reading for a look at how the credit union did on the three major criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and provides protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an a credit union's financial fortitude, capital is valuable. When it comes to safety and soundness, more capital is preferred.

OSU INSTITUTE OF TECHNOLOGY received a score of 0 out of a possible 30 points on our test to measure capital adequacy, coming in below the national average of 15.26.

OSU INSTITUTE OF TECHNOLOGY had a capitalization ratio of -4.00 percent in our test, lower than the average for all credit unions, a sign that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the impact of problem assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with large numbers of these kinds of assets could eventually have to use capital to cover losses, cutting down on its cushion of equity. 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 diminished earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, OSU INSTITUTE OF TECHNOLOGY scored 0 out of a possible 40 points, lower than the national average of 38.15 points.

A below-average ratio of problem assets of -22.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money affects its safety and soundness. A credit union can retain its earnings, increasing its capital cushion, or use them to deal with problematic loans, potentially making the credit union better able to withstand economic shocks. Losses, on the other hand, lessen a credit union's ability to do those things.

OSU INSTITUTE OF TECHNOLOGY scored 0 out of a possible 30 on Bankrate's test of earnings, coming in below the national average of 10.31.

One indication that the credit union is doing better than its peers in this area was its earnings ratio of 744.00 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.