Safe and Sound

PUBLIC EMPLOYEES

Waterloo, IA
4
Star Rating
PUBLIC EMPLOYEES is a Waterloo, IA-based, NCUA-insured credit union started in 1952. Regulatory filings show the credit union having assets of $27.1 million, as of December 31, 2017.

With 5 full-time employees, the credit union holds loans and leases worth $14.8 million. Its 2,006 members currently have $23.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PUBLIC EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three important criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of a credit union's financial fortitude. It acts as a cushion against losses and provides protection for members when a credit union is struggling financially. When looking at safety and soundness, the higher the capital, the better.

PUBLIC EMPLOYEES scored above the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, scoring 20 out of a possible 30 points.

PUBLIC EMPLOYEES appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 20.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

This test is intended to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as past-due mortgages.

Having large numbers of these kinds of assets suggests a credit union could have to use capital to absorb losses, decreasing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a future failure.

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

Earnings score

How successful a credit union is at making money affects its long-term survivability. A credit union can retain its earnings, increasing its capital cushion, or use them to deal with problematic loans, potentially making the credit union more resilient in tough times. Losses, on the other hand, lessen a credit union's ability to do those things.

PUBLIC EMPLOYEES scored 6 out of a possible 30 on Bankrate's test of earnings, less than the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign that it's running ahead of 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.