Safe and Sound

SERVICE ONE

Bowling Green, KY
5
Star Rating
SERVICE ONE is a Bowling Green, KY-based, NCUA-insured credit union founded in 1963. Regulatory filings show the credit union having $158.1 million in assets, as of December 31, 2017.

Members have $106.2 million on deposit tended by 46 full-time employees. With that footprint, the credit union holds loans and leases worth $106.2 million. SERVICE ONE's 15,782 members currently have $138.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SERVICE ONE exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of an institution's financial fortitude. It acts as a buffer against losses and provides protection for members during periods of financial trouble for the credit union. When looking at safety and soundness, the more capital, the better.

SERVICE ONE received a score of 14 out of a possible 30 points on our test to measure capital adequacy, less than the national average of 15.65.

SERVICE ONE had a capitalization ratio of 14.00 percent in our test, worse than the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of problem assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with large numbers of these types of assets could eventually have to use capital to cover losses, reducing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a failure in the future.

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

SERVICE ONE's ratio of troubled assets was 0.00 percent in our test, below the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the credit union better prepared to withstand financial trouble. Conversely, losses take away from a credit union's ability to do those things.

On Bankrate's earnings test, SERVICE ONE scored 20 out of a possible 30, exceeding the national average of 10.11.

One indication that the credit union is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.