Safe and Sound

COOPERATIVE CENTER

BERKELEY, CA
2
Star Rating
Started in 1942, COOPERATIVE CENTER is an NCUA-insured credit union headquartered in BERKELEY, CA. As of June 30, 2017, the credit union had assets of $119.4 million.

With 24 full-time employees, the credit union holds loans and leases worth $76.8 million. COOPERATIVE CENTER's 11,811 members currently have $111.0 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, COOPERATIVE CENTER exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three major criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of a credit union's financial fortitude. It acts as a bulwark against losses and affords protection for members when a credit union is experiencing financial trouble. When looking at safety and soundness, more capital is better.

COOPERATIVE CENTER received a score of 0 out of a possible 30 points on our test to measure capital adequacy, failing to reach the national average of 15.26.

COOPERATIVE CENTER had a capitalization ratio of 4.00 percent in our test, worse than 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 loan loss reserves and overall capitalization could be affected by troubled assets, such as past-due loans.

A credit union with lots of these kinds of assets may eventually be forced to use capital to absorb losses, reducing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, pushing down earnings and increasing the risk of a future failure.

On Bankrate's asset quality test, COOPERATIVE CENTER scored 32 out of a possible 40 points, failing to reach the national average of 38.15 points.

Troubled assets made up 17.00 percent of COOPERATIVE CENTER's total assets in our test, greater than the national average and something to keep an eye on.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. A credit union can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better able to withstand economic shocks. Conversely, losses diminish a credit union's ability to do those things.

COOPERATIVE CENTER scored 0 out of a possible 30 on Bankrate's test of earnings, below the national average of 10.31.

One sign that COOPERATIVE CENTER is underperforming its peers in this area was its earnings ratio of 0.00 percent in our test, lower 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.