Safe and Sound

SCENIC FALLS

IDAHO FALLS, ID
3
Star Rating
SCENIC FALLS is an NCUA-insured credit union started in 1971 and currently based in IDAHO FALLS, ID. The credit union holds assets of $61.3 million, according to June 30, 2017, regulatory filings.

Thanks to the work of 14 full-time employees, the credit union currently holds loans and leases worth $43.9 million. Its 7,311 members currently have $55.2 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, SCENIC FALLS exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three major criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is useful. It works as a cushion against losses and affords protection for members when a credit union is experiencing economic trouble. From a safety and soundness perspective, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, SCENIC FALLS received a score of 6 out of a possible 30 points, coming in below the national average of 15.26.

SCENIC FALLS's capitalization ratio of 7.00 percent in our test was less than the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.

Having large numbers of these types of assets may eventually force a credit union to use capital to cover losses, cutting down on its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in diminished earnings and potentially more risk of a future failure.

SCENIC FALLS beat out the national average of 38.15 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

The credit union's ratio of problem assets was 6.00 percent in our test, lower than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. Earnings may be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, likely making the credit union better prepared to withstand economic shocks. Losses, on the other hand, lessen a credit union's ability to do those things.

SCENIC FALLS scored 2 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 10.31.

SCENIC FALLS had an earnings ratio of 0.00 percent in our test, below the average for all credit unions, a sign that it's underperforming 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.