Safe and Sound

SIKESTON PUBLIC SCHOOLS

Sikeston, MO
4
Star Rating
Sikeston, MO-based SIKESTON PUBLIC SCHOOLS is an NCUA-insured credit union founded in 1976. Regulatory filings show the credit union having assets of $5.2 million, as of December 31, 2017.

SIKESTON PUBLIC SCHOOLS's 1,069 members currently have $4.5 million in shares with the credit union. With that footprint, the credit union holds loans and leases worth $2.6 million.

Overall, Bankrate believes that, as of December 31, 2017, SIKESTON PUBLIC SCHOOLS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three important criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of an institution's financial strength. It works as a buffer against losses and as protection for members when a credit union is experiencing financial instability. When looking at safety and soundness, the higher the capital, the better.

SIKESTON PUBLIC SCHOOLS beat out the national average of 15.65 points on our test to measure capital adequacy, receiving a score of 20 out of a possible 30 points.

SIKESTON PUBLIC SCHOOLS's capitalization ratio of 20.00 percent in our test was better than the average for all credit unions, suggesting that it's stronger than its peers.

Asset Quality Score

This test's purpose is to try to understand 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 mortgages.

A credit union with a large number of these kinds of assets may eventually have to use capital to absorb losses, diminishing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in reduced earnings and potentially more risk of a failure in the future.

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

The credit union's ratio of problem assets was 0.00 percent in our test, below the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. A credit union can retain its earnings, boosting its capital cushion, or use them to address problematic loans, potentially making the credit union better prepared to withstand economic shocks. Losses, on the other hand, diminish a credit union's ability to do those things.

SIKESTON PUBLIC SCHOOLS scored 6 out of a possible 30 on Bankrate's earnings test, below the national average of 10.11.

One indication that the credit union 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.