Safe and Sound

SEMINOLE PUBLIC SCHOOLS

Seminole, TX
5
Star Rating
Seminole, TX-based SEMINOLE PUBLIC SCHOOLS is an NCUA-insured credit union founded in 1965. Regulatory filings show the credit union having assets of $7.1 million, as of December 31, 2017.

Members have $3.0 million on deposit tended by 2 full-time employees. With that footprint, the credit union has amassed loans and leases worth $3.0 million. SEMINOLE PUBLIC SCHOOLS's 833 members currently have $5.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SEMINOLE PUBLIC SCHOOLS 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 grade 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 bulwark against losses and affords protection for members during times of economic instability for the credit union. It follows then that when it comes to measuring an an institution's financial fortitude, capital is important. When it comes to safety and soundness, more capital is better.

SEMINOLE PUBLIC SCHOOLS scored above the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, racking up 30 out of a possible 30 points.

SEMINOLE PUBLIC SCHOOLS had a capitalization ratio of 30.00 percent in our test, higher than the average for all credit unions, suggesting that it could be more resilient in a crisis than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as past-due loans.

A credit union with extensive holdings of these types of assets could eventually be required to use capital to absorb losses, reducing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in depressed earnings and potentially more risk of a future failure.

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

A below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. Earnings may be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, potentially making the credit union better able to withstand financial trouble. Losses, on the other hand, diminish a credit union's ability to do those things.

SEMINOLE PUBLIC SCHOOLS did below-average on Bankrate's earnings test, achieving a score of 2 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, higher than 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.