Safe and Sound

SOUTHWEST COUNTIES SCHOOL EMPLOYEES

NEOSHO, MO
4
Star Rating
Started in 1993, SOUTHWEST COUNTIES SCHOOL EMPLOYEES is an NCUA-insured credit union based in NEOSHO, MO. As of December 31, 2017, the credit union had assets of $1.9 million.

The credit union has amassed loans and leases worth $1.0 million. SOUTHWEST COUNTIES SCHOOL EMPLOYEES's 732 members currently have $1.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SOUTHWEST COUNTIES SCHOOL EMPLOYEES 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 key criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and affords protection for members when a credit union is experiencing financial instability. Therefore, when it comes to measuring an a credit union's financial fortitude, capital is key. From a safety and soundness perspective, more capital is preferred.

SOUTHWEST COUNTIES SCHOOL EMPLOYEES came in below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, achieving a score of 12 out of a possible 30 points.

SOUTHWEST COUNTIES SCHOOL EMPLOYEES had a capitalization ratio of 12.00 percent in our test, lower than the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of troubled assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.

A credit union with lots of these kinds of assets may eventually be required to use capital to cover losses, cutting down on its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, diminishing earnings and increasing the risk of a future failure.

SOUTHWEST COUNTIES SCHOOL EMPLOYEES scored 40 out of a possible 40 points on Bankrate's asset quality test, beating the national average of 38.09.

SOUTHWEST COUNTIES SCHOOL EMPLOYEES's ratio of troubled assets was 0.00 percent in our test, less than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings may be retained by the credit union, giving a boost to its capital cushion, or be used to deal with problematic loans, potentially making the credit union better able to withstand economic trouble. Credit unions that are losing money, however, are less able to do those things.

SOUTHWEST COUNTIES SCHOOL EMPLOYEES outperformed the average on Bankrate's earnings test, achieving a score of 12 out of a possible 30.

One indication that SOUTHWEST COUNTIES SCHOOL EMPLOYEES 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.