Safe and Sound

SERVICE PLUS

Moline, IL
4
Star Rating
Founded in 1950, SERVICE PLUS is an NCUA-insured credit union based in Moline, IL. As of December 31, 2017, the credit union had assets of $22.3 million.

Thanks to the work of 4 full-time employees, the credit union currently holds loans and leases worth $14.5 million. SERVICE PLUS's 1,660 members currently have $19.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SERVICE PLUS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three key criteria Bankrate used to score U.S. credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial resilience, capital is key. It works as a buffer against losses and affords protection for members when a credit union is experiencing financial instability. From a safety and soundness perspective, the more capital, the better.

On our test to measure capital adequacy, SERVICE PLUS scored 18 out of a possible 30 points, above the national average of 15.65.

SERVICE PLUS's capitalization ratio of 18.00 percent in our test was above the average for all credit unions, a sign that it's on more solid financial footing 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 unpaid loans.

Having large numbers of these kinds of assets may eventually force a credit union to use capital to absorb losses, shrinking its cushion of equity. 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 reduced earnings and potentially more risk of a future failure.

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

SERVICE PLUS's ratio of problem assets was 0.00 percent in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, likely making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money have less ability to do those things.

SERVICE PLUS fell behind the national average on Bankrate's earnings test, achieving a score of 6 out of a possible 30.

SERVICE PLUS had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's beating 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.