Safe and Sound

SHOW-ME

Mexico, MO
4
Star Rating
Mexico, MO-based SHOW-ME is an NCUA-insured credit union founded in 1954. Regulatory filings show the credit union having assets of $28.5 million, as of December 31, 2017.

Thanks to the efforts of 8 full-time employees, the credit union has amassed loans and leases worth $18.7 million. Its 3,276 members currently have $24.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SHOW-ME exhibited a good condition, earning 4 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 evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for members during times of financial trouble for the credit union. It follows then that a credit union's level of capital is an important measurement of its financial strength. When looking at safety and soundness, the more capital, the better.

SHOW-ME achieved a score of 16 out of a possible 30 points on our test to measure capital adequacy, exceeding the national average of 15.65.

SHOW-ME had a capitalization ratio of 16.00 percent in our test, identical the average for all credit unions, an indication that it's running neck and neck with its peers.

Asset Quality Score

Bankrate uses this test to estimate the impact of problem assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

Having large numbers of these types of assets could eventually force a credit union to use capital to absorb losses, reducing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in diminished earnings and potentially more risk of a future failure.

SHOW-ME scored 40 out of a possible 40 points on Bankrate's asset quality test, above the national average of 38.09.

SHOW-ME's ratio of troubled assets was 0.00 percent in our test, beneath the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or use them to address problematic loans, likely making the credit union more resilient in times of trouble. Conversely, losses take away from a credit union's ability to do those things.

SHOW-ME scored 8 out of a possible 30 on Bankrate's test of earnings, less than the national average of 10.11.

One indication that SHOW-ME 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.