Safe and Sound

SHAMROCK FOODS

PHOENIX, AZ
3
Star Rating
SHAMROCK FOODS is an NCUA-insured credit union started in 1954 and currently based in PHOENIX, AZ. As of December 31, 2017, the credit union had assets of $5.7 million.

With 4 full-time employees, the credit union holds loans and leases worth $4.7 million. SHAMROCK FOODS's 1,407 members currently have $4.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SHAMROCK FOODS exhibited a generally satisfactory condition, earning 3 out of 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 score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial resilience, capital is useful. When it comes to safety and soundness, more capital is preferred.

On our test to measure capital adequacy, SHAMROCK FOODS received a score of 8 out of a possible 30 points, coming in below the national average of 15.65.

SHAMROCK FOODS had a capitalization ratio of 8.00 percent in our test, worse than the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid loans.

Having extensive holdings of these types of assets could eventually require a credit union to use capital to absorb losses, diminishing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in lower earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, SHAMROCK FOODS scored 40 out of a possible 40 points, above the national average of 38.09 points.

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

Earnings score

A credit union's earnings performance affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, likely making the credit union better able to withstand economic shocks. Credit unions that are losing money, however, are less able to do those things.

SHAMROCK FOODS scored 2 out of a possible 30 on Bankrate's earnings test, lower than the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's outperforming 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.