Safe and Sound

STATE HIGHWAY PATROL

COLUMBUS, OH
5
Star Rating
Founded in 1960, STATE HIGHWAY PATROL is an NCUA-insured credit union based in COLUMBUS, OH. As of December 31, 2017, the credit union had assets of $62.9 million.

Members have $30.3 million on deposit tended by 10 full-time employees. With that footprint, the credit union holds loans and leases worth $30.3 million. Its 6,502 members currently have $54.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, STATE HIGHWAY PATROL exhibited a superior condition, earning a full 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 American credit unions on safety and soundness.

WHAT IS
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 buffer against losses and affords protection for members during periods of economic trouble for the credit union. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, STATE HIGHWAY PATROL achieved a score of 18 out of a possible 30 points, exceeding the national average of 15.65.

STATE HIGHWAY PATROL appears to be on more solid financial footing than its peers, with a capitalization ratio of 18.00 percent in our test, higher than the average for all credit unions.

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 unpaid loans.

A credit union with lots of these kinds of assets may eventually be forced to use capital to cover losses, decreasing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, reducing earnings and increasing the risk of a future failure.

On Bankrate's asset quality test, STATE HIGHWAY PATROL scored 40 out of a possible 40 points, beating out the national average of 38.09 points.

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. Earnings can be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in tough times. However, credit unions that are losing money have less ability to do those things.

STATE HIGHWAY PATROL exceeded the national average on Bankrate's test of earnings, achieving a score of 12 out of a possible 30.

STATE HIGHWAY PATROL had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign that it's doing better than its peers in this area.

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.