Safe and Sound

COMMUNITYWIDE

SOUTH BEND, IN
5
Star Rating
Founded in 1967, COMMUNITYWIDE is an NCUA-insured credit union based in SOUTH BEND, IN. The credit union holds $397.9 million in assets, according to June 30, 2017, regulatory filings.

Thanks to the efforts of 77 full-time employees, the credit union holds loans and leases worth $354.7 million. Its 46,566 members currently have $276.9 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, COMMUNITYWIDE exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union faired on the three important criteria Bankrate used to score U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and as protection for members when a credit union is experiencing economic trouble. Therefore, a credit union's level of capital is a valuable measurement of its financial fortitude. When it comes to safety and soundness, the higher the capital, the better.

COMMUNITYWIDE racked up 24 out of a possible 30 points on our test to measure capital adequacy, beating the national average of 15.26.

COMMUNITYWIDE had a capitalization ratio of 16.00 percent in our test, better than the average for all credit unions, suggesting that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as past-due mortgages.

A credit union with a large number of these kinds of assets could eventually be required to use capital to absorb losses, decreasing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a failure in the future.

COMMUNITYWIDE scored 36 out of a possible 40 points on Bankrate's asset quality test, falling short of the national average of 38.15.

An above-average ratio of problem assets of 13.00 percent in our test was a potential cause for concern for the credit union.

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the credit union better prepared to withstand economic shocks. Conversely, losses diminish a credit union's ability to do those things.

COMMUNITYWIDE scored 18 out of a possible 30 on Bankrate's earnings test, beating the national average of 10.31.

One sign that COMMUNITYWIDE is doing better than 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.