Safe and Sound

SCHOOL EMPLOYEES

SUPERIOR, WI
4
Star Rating
Started in 1936, SCHOOL EMPLOYEES is an NCUA-insured credit union headquartered in SUPERIOR, WI. As of December 31, 2017, the credit union had assets of $2.3 million.

The credit union has amassed loans and leases worth $1.5 million. SCHOOL EMPLOYEES's 689 members currently have $1.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SCHOOL EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three key criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides protection for members when a credit union is struggling financially. It follows then that a credit union's level of capital is an important measurement of its financial resilience. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, SCHOOL EMPLOYEES racked up 22 out of a possible 30 points, beating the national average of 15.65.

SCHOOL EMPLOYEES's capitalization ratio of 22.00 percent in our test was higher than the average for all credit unions, a sign that it's more well prepared for financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

Having large numbers of these types of assets suggests a credit union could eventually have to use capital to cover losses, reducing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, pushing down earnings and increasing the risk of a failure in the future.

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

The credit union's ratio of troubled assets was 0.00 percent in our test, less than the national average and potentially indicative of greater financial strength than 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, giving a boost to its capital cushion, or use them to address problematic loans, potentially making the credit union more resilient in tough times. Obviously, credit unions that are losing money are less able to do those things.

SCHOOL EMPLOYEES fell behind the national average on Bankrate's test of earnings, achieving a score of 2 out of a possible 30.

One sign that the credit union is running ahead of 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.