Safe and Sound

ZIEGLER

BLOOMINGTON, MN
4
Star Rating
ZIEGLER is an NCUA-insured credit union started in 1948 and currently headquartered in BLOOMINGTON, MN. As of December 31, 2017, the credit union held assets of $4.2 million.

ZIEGLER's 890 members currently have $3.5 million in shares with the credit union. With that footprint, the credit union currently holds loans and leases worth $996,052.

Overall, Bankrate believes that, as of December 31, 2017, ZIEGLER exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did 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 cushion against losses and affords protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an a credit union's financial resilience, capital is important. When looking at safety and soundness, the more capital, the better.

ZIEGLER beat out the national average of 15.65 points on our test to measure capital adequacy, receiving a score of 24 out of a possible 30 points.

ZIEGLER appears to be more resilient than its peers, with a capitalization ratio of 24.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of problem assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with a large number of these types of assets could eventually have to use capital to cover losses, reducing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, decreasing earnings and increasing the chances of a future failure.

On Bankrate's asset quality test, ZIEGLER scored 40 out of a possible 40 points, above the national average of 38.09 points.

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 cushion, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. Credit unions that are losing money, however, are less able to do those things.

ZIEGLER fell behind the national average on Bankrate's earnings test, achieving a score of 4 out of a possible 30.

ZIEGLER had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's running ahead of 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.