Safe and Sound

SIOUX VALLEY COOP

Watertown, SD
5
Star Rating
SIOUX VALLEY COOP is an NCUA-insured credit union started in 1953 and currently based in Watertown, SD. Regulatory filings show the credit union having $19.1 million in assets, as of December 31, 2017.

Members have $14.5 million on deposit tended by 4 full-time employees. With that footprint, the credit union has amassed loans and leases worth $14.5 million. SIOUX VALLEY COOP's 2,486 members currently have $14.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SIOUX VALLEY COOP exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three key criteria Bankrate used to grade American credit unions on safety and soundness.

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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 strength, capital is key. It acts as a bulwark against losses and as protection for members during times of economic instability for the credit union. From a safety and soundness perspective, the more capital, the better.

SIOUX VALLEY COOP scored 30 out of a possible 30 points on our test to measure capital adequacy, beating the national average of 15.65.

SIOUX VALLEY COOP had a capitalization ratio of 30.00 percent in our test, above the average for all credit unions, a sign that it could be more resilient in a crisis 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 problem assets, such as past-due loans.

A credit union with a large number of these kinds of assets could eventually be forced to use capital to absorb losses, shrinking its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a failure in the future.

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

Troubled assets made up 0.00 percent of the credit union's total assets in our test, lower than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. Earnings may be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, likely making the credit union better able to withstand financial trouble. Obviously, credit unions that are losing money have less ability to do those things.

SIOUX VALLEY COOP outperformed the average on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.

One indication that SIOUX VALLEY COOP is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.