Safe and Sound

CORNER STONE

LANCASTER, TX
3
Star Rating
CORNER STONE is an NCUA-insured credit union founded in 1952 and currently based in LANCASTER, TX. Regulatory filings show the credit union having $21.4 million in assets, as of June 30, 2017.

Thanks to the efforts of 13 full-time employees, the credit union has amassed loans and leases worth $15.8 million. Its 4,997 members currently have $19.4 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, CORNER STONE exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three important criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an a credit union's financial fortitude, capital is crucial. When looking at safety and soundness, the higher the capital, the better.

CORNER STONE fell short of the national average of 15.26 on our test to measure the adequacy of a credit union's capital, scoring 4 out of a possible 30 points.

CORNER STONE's capitalization ratio of 6.00 percent in our test was below the average for all credit unions, suggesting that it could be less resilient in a crisis 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 past-due mortgages.

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

CORNER STONE scored 32 out of a possible 40 points on Bankrate's asset quality test, failing to reach the national average of 38.15.

An above-average ratio of problem assets of 14.00 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 safety and soundness. A credit union can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, likely making the credit union more resilient in times of trouble. Conversely, losses reduce a credit union's ability to do those things.

On Bankrate's earnings test, CORNER STONE scored 16 out of a possible 30, beating the national average of 10.31.

The credit union had an earnings ratio of 8.00 percent in our test, higher than the average for all credit unions, a sign that it's outperforming 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.