Safe and Sound

SIOUX FALLS

Sioux Falls, SD
4
Star Rating
Sioux Falls, SD-based SIOUX FALLS is an NCUA-insured credit union started in 1934. As of December 31, 2017, the credit union held assets of $268.8 million.

With 100 full-time employees, the credit union has amassed loans and leases worth $139.8 million. Its 28,217 members currently have $237.7 million in shares with the credit union.

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

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of an institution's financial fortitude. It works as a cushion against losses and as protection for members during times of financial instability for the credit union. When looking at safety and soundness, more capital is preferred.

SIOUX FALLS received a score of 12 out of a possible 30 points on our test to measure capital adequacy, less than the national average of 15.65.

SIOUX FALLS's capitalization ratio of 12.00 percent in our test was below the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the impact of troubled 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 extensive holdings of these types of assets could eventually have to use capital to absorb losses, cutting down on its equity buffer. 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 lower earnings and potentially more risk of a failure in the future.

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

Troubled assets made up 0.00 percent of SIOUX FALLS's total assets 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 profitability has an effect on its safety and soundness. Earnings may be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, potentially making the credit union better able to withstand economic trouble. Losses, on the other hand, lessen a credit union's ability to do those things.

On Bankrate's earnings test, SIOUX FALLS scored 12 out of a possible 30, exceeding the national average of 10.11.

One indication that SIOUX FALLS is beating its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.