Safe and Sound

POCATELLO SIMPLOT

POCATELLO, ID
5
Star Rating
POCATELLO SIMPLOT is a POCATELLO, ID-based, NCUA-insured credit union that opened its doors in 1955. Regulatory filings show the credit union having assets of $29.3 million, as of December 31, 2017.

Members have $16.0 million on deposit tended by 8 full-time employees. With that footprint, the credit union holds loans and leases worth $16.0 million. POCATELLO SIMPLOT's 1,934 members currently have $22.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, POCATELLO SIMPLOT exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to score U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members when a credit union is struggling financially. Therefore, an institution's level of capital is a useful measurement of its financial resilience. When looking at safety and soundness, more capital is preferred.

POCATELLO SIMPLOT scored 30 out of a possible 30 points on our test to measure capital adequacy, beating the national average of 15.65.

POCATELLO SIMPLOT appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 30.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

This test's purpose is to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid loans.

Having lots of these types of assets could eventually require a credit union to use capital to cover losses, decreasing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, diminishing earnings and increasing the chances of a future failure.

On Bankrate's test of asset quality, POCATELLO SIMPLOT scored 40 out of a possible 40 points, better than the national average of 38.09 points.

The credit union's ratio of problem assets was 0.00 percent in our test, below the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or use them to address problematic loans, potentially making the credit union better prepared to withstand financial shocks. Losses, on the other hand, take away from a credit union's ability to do those things.

POCATELLO SIMPLOT scored 2 out of a possible 30 on Bankrate's earnings test, falling short of the national average of 10.11.

One indication that POCATELLO SIMPLOT is outperforming its peers in this area was its earnings ratio of 0.00 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.