Safe and Sound

CAPITOL

Austin, TX
4
Star Rating
CAPITOL is an NCUA-insured credit union started in 1954 and currently headquartered in Austin, TX. Regulatory filings show the credit union having assets of $125.6 million, as of June 30, 2017.

Members have $86.7 million on deposit tended by 30 full-time employees. With that footprint, the credit union currently holds loans and leases worth $86.7 million. CAPITOL's 11,325 members currently have $114.8 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, CAPITOL 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 major criteria Bankrate used to score U.S. credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial fortitude, capital is valuable. It works as a buffer against losses and provides protection for members during times of economic instability for the credit union. When looking at safety and soundness, more capital is preferred.

CAPITOL came in below the national average of 15.26 on our test to measure capital adequacy, receiving a score of 6 out of a possible 30 points.

CAPITOL's capitalization ratio of 7.00 percent in our test was below the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as unpaid loans.

A credit union with a large number of these types of assets could eventually be required to use capital to cover losses, cutting down on its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in diminished earnings and potentially more risk of a future failure.

CAPITOL beat out the national average of 38.15 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

A lower-than-average ratio of troubled assets of 1.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money affects its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, likely making the credit union better able to withstand financial trouble. Conversely, losses diminish a credit union's ability to do those things.

CAPITOL beat the national average on Bankrate's earnings test, achieving a score of 12 out of a possible 30.

One sign that CAPITOL is outperforming its peers in this area was its earnings ratio of 6.00 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.