Safe and Sound

COMMUNICATION

Oklahoma City, OK
5
Star Rating
COMMUNICATION is an Oklahoma City, OK-based, NCUA-insured credit union founded in 1939. The credit union holds $1.12 billion in assets, according to June 30, 2017, regulatory filings.

Thanks to the work of 200 full-time employees, the credit union has amassed loans and leases worth $794.0 million. Its 79,149 members currently have $872.8 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, COMMUNICATION exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three important criteria Bankrate used to grade 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 resilience, capital is key. It works as a cushion against losses and as protection for members when a credit union is experiencing financial instability. When looking at safety and soundness, the more capital, the better.

COMMUNICATION beat out the national average of 15.26 points on our test to measure the adequacy of a credit union's capital, racking up 18 out of a possible 30 points.

COMMUNICATION's capitalization ratio of 14.00 percent in our test was above the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as past-due loans.

A credit union with large numbers of these types of assets may eventually have to use capital to cover losses, cutting down on its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in diminished earnings and potentially more risk of a failure in the future.

COMMUNICATION did better than the national average of 38.15 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

A below-average ratio of problem assets of 4.00 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 cushion, or be used to address problematic loans, likely making the credit union better able to withstand economic shocks. Obviously, credit unions that are losing money are less able to do those things.

COMMUNICATION beat the national average on Bankrate's test of earnings, achieving a score of 14 out of a possible 30.

COMMUNICATION had an earnings ratio of 6.00 percent in our test, above the average for all credit unions, an indication 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.