Safe and Sound

SOUTHWEST KANSAS COMMUNITY

Dodge City, KS
3
Star Rating
Started in 1951, SOUTHWEST KANSAS COMMUNITY is an NCUA-insured credit union headquartered in Dodge City, KS. The credit union holds assets of $4.5 million, according to December 31, 2017, regulatory filings.

With 2 full-time employees, the credit union has amassed loans and leases worth $3.1 million. Its 601 members currently have $3.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SOUTHWEST KANSAS COMMUNITY exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three important criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial resilience, capital is key. It works as a bulwark against losses and affords protection for members when a credit union is experiencing economic trouble. When it comes to safety and soundness, the more capital, the better.

SOUTHWEST KANSAS COMMUNITY came in below the national average of 15.65 on our test to measure capital adequacy, scoring 14 out of a possible 30 points.

SOUTHWEST KANSAS COMMUNITY had a capitalization ratio of 14.00 percent in our test, lower than the average for all credit unions, an indication that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as past-due mortgages.

Having a large number of these kinds of assets means a credit union could have to use capital to absorb losses, shrinking 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 depressed earnings and potentially more risk of a failure in the future.

SOUTHWEST KANSAS COMMUNITY finished below the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

SOUTHWEST KANSAS COMMUNITY's ratio of troubled assets was 0.00 percent in our test, below the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better able to withstand economic trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's test of earnings, SOUTHWEST KANSAS COMMUNITY scored 2 out of a possible 30, less than the national average of 10.11.

One sign that the credit union is running ahead of 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.