Safe and Sound

SPIRIT OF AMERICA

LINCOLN, NE
4
Star Rating
LINCOLN, NE-based SPIRIT OF AMERICA is an NCUA-insured credit union founded in 1943. Regulatory filings show the credit union having assets of $43.6 million, as of December 31, 2017.

Members have $16.8 million on deposit tended by 6 full-time employees. With that footprint, the credit union has amassed loans and leases worth $16.8 million. Its 4,232 members currently have $39.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SPIRIT OF AMERICA exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three important criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial resilience, capital is essential. It works as a buffer against losses and as protection for members during periods of financial instability for the credit union. When looking at safety and soundness, more capital is preferred.

SPIRIT OF AMERICA came in below the national average of 15.65 on our test to measure capital adequacy, scoring 6 out of a possible 30 points.

SPIRIT OF AMERICA's capitalization ratio of 6.00 percent in our test was below the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

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

Having lots of these types of assets may eventually force a credit union to use capital to cover losses, diminishing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in diminished earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, SPIRIT OF AMERICA scored 40 out of a possible 40 points, better than the national average of 38.09 points.

Troubled assets made up 0.00 percent of SPIRIT OF AMERICA'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 making money affects its long-term survivability. Earnings may be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, potentially making the credit union better able to withstand financial trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's earnings test, SPIRIT OF AMERICA scored 16 out of a possible 30, beating the national average of 10.11.

One indication that SPIRIT OF AMERICA 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.