Safe and Sound

COMMUNITYAMERICA

KANSAS CITY, MO
4
Star Rating
COMMUNITYAMERICA is an NCUA-insured credit union founded in 1940 and currently headquartered in KANSAS CITY, MO. The credit union has assets of $2.51 billion, according to June 30, 2017, regulatory filings.

Members have $1.58 billion on deposit tended by 762 full-time employees. With that footprint, the credit union holds loans and leases worth $1.58 billion. COMMUNITYAMERICA's 212,213 members currently have $2.04 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, COMMUNITYAMERICA exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three important criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for members when a credit union is experiencing financial instability. Therefore, an institution's level of capital is an important measurement of its financial strength. From a safety and soundness perspective, the more capital, the better.

COMMUNITYAMERICA achieved a score of 16 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, exceeding the national average of 15.26.

COMMUNITYAMERICA had a capitalization ratio of 12.00 percent in our test, worse than the average for all credit unions, a sign that it's on less solid financial footing than its peers.

Asset Quality Score

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

A credit union with a large number of these kinds of assets could eventually be required to use capital to cover losses, cutting down on its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, pushing down earnings and increasing the chances of a failure in the future.

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

The credit union's ratio of troubled assets was 4.00 percent in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, likely making the credit union better able to withstand economic shocks. Conversely, losses take away from a credit union's ability to do those things.

COMMUNITYAMERICA received above-average marks on Bankrate's earnings test, achieving a score of 12 out of a possible 30.

One sign that the credit union is outperforming its peers in this area was its earnings ratio of 5.00 percent in our test, higher than 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.