Safe and Sound

STOUGHTON U.S. RUBBER EMPLOYEES

STOUGHTON, WI
5
Star Rating
STOUGHTON U.S. RUBBER EMPLOYEES is an NCUA-insured credit union founded in 1951 and currently based in STOUGHTON, WI. As of December 31, 2017, the credit union had assets of $1.1 million.

Its 267 members currently have $849,586 in shares with the credit union. With that footprint, the credit union holds loans and leases worth $285,675.

Overall, Bankrate believes that, as of December 31, 2017, STOUGHTON U.S. RUBBER EMPLOYEES 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 important criteria Bankrate used to grade U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members when a credit union is experiencing economic instability. Therefore, when it comes to measuring an a credit union's financial resilience, capital is useful. When it comes to safety and soundness, the higher the capital, the better.

STOUGHTON U.S. RUBBER EMPLOYEES beat out the national average of 15.65 points on our test to measure capital adequacy, receiving a score of 30 out of a possible 30 points.

STOUGHTON U.S. RUBBER EMPLOYEES appears to be on more solid financial footing than its peers, with a capitalization ratio of 30.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

A credit union with a large number of these types of assets could 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 thus aren't earning money, reducing earnings and elevating the chances of a failure in the future.

On Bankrate's test of asset quality, STOUGHTON U.S. RUBBER EMPLOYEES scored 40 out of a possible 40 points, beating out the national average of 38.09 points.

Troubled assets made up 0.00 percent of STOUGHTON U.S. RUBBER EMPLOYEES's total assets in our test, less than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. Earnings can be retained by the credit union, expanding its capital buffer, or be used to deal with problematic loans, potentially making the credit union better prepared to withstand financial shocks. Conversely, losses lessen a credit union's ability to do those things.

STOUGHTON U.S. RUBBER EMPLOYEES fell behind the national average on Bankrate's test of earnings, achieving a score of 2 out of a possible 30.

One indication that the credit union is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.