Safe and Sound

CAPITAL COMMUNICATIONS

ALBANY, NY
4
Star Rating
ALBANY, NY-based CAPITAL COMMUNICATIONS is an NCUA-insured credit union founded in 1953. As of June 30, 2017, the credit union held assets of $1.52 billion.

Thanks to the efforts of 311 full-time employees, the credit union currently holds loans and leases worth $1.34 billion. CAPITAL COMMUNICATIONS's 136,709 members currently have $1.30 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, CAPITAL COMMUNICATIONS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three key criteria Bankrate used to score American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an a credit union's financial resilience, capital is useful. When looking at safety and soundness, the higher the capital, the better.

CAPITAL COMMUNICATIONS received a score of 10 out of a possible 30 points on our test to measure capital adequacy, below the national average of 15.26.

CAPITAL COMMUNICATIONS appears to be weaker than its peers in this area, with a capitalization ratio of 10.00 percent in our test, below the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having extensive holdings of these types of assets suggests a credit union could eventually have to use capital to cover losses, diminishing its equity buffer. 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, diminishing earnings and increasing the risk of a failure in the future.

CAPITAL COMMUNICATIONS finished below the national average of 38.15 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

An above-average ratio of troubled assets of 14.00 percent in our test was something to watch for the credit union.

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, boosting its capital buffer, or use them to address problematic loans, potentially making the credit union more resilient in tough times. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, CAPITAL COMMUNICATIONS scored 18 out of a possible 30, better than the national average of 10.31.

One sign that the credit union is running ahead of its peers in this area was its earnings ratio of 8.00 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.