Safe and Sound

SANDHILLS

ULYSSES, KS
3
Star Rating
ULYSSES, KS-based SANDHILLS is an NCUA-insured credit union founded in 1940. As of June 30, 2017, the credit union held assets of $963,554.

The credit union currently holds loans and leases worth $0. SANDHILLS's 134 members currently have $638,367 in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, SANDHILLS exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three major criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and affords protection for members when a credit union is experiencing financial trouble. It follows then that when it comes to measuring an a credit union's financial resilience, capital is valuable. When it comes to safety and soundness, more capital is preferred.

On our test to measure capital adequacy, SANDHILLS received a score of 8 out of a possible 30 points, less than the national average of 15.26.

SANDHILLS's capitalization ratio of 8.00 percent in our test was less than the average for all credit unions, an indication that it's weaker than its peers.

Asset Quality Score

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

Having a large number of these types of assets may eventually force a credit union to use capital to cover losses, diminishing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, reducing earnings and elevating the risk of a future failure.

SANDHILLS scored 40 out of a possible 40 points on Bankrate's asset quality test, exceeding the national average of 38.15.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the credit union more resilient in times of trouble. Conversely, losses lessen a credit union's ability to do those things.

SANDHILLS scored 0 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 10.31.

One sign that SANDHILLS is underperforming its peers in this area was its earnings ratio of -48.00 percent in our test, worse 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.