Safe and Sound

CU COMMUNITY

SPRINGFIELD, MO
5
Star Rating
Started in 1934, CU COMMUNITY is an NCUA-insured credit union headquartered in SPRINGFIELD, MO. As of June 30, 2017, the credit union held assets of $109.6 million.

With 34 full-time employees, the credit union holds loans and leases worth $52.7 million. CU COMMUNITY's 11,461 members currently have $91.4 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, CU COMMUNITY exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three key criteria Bankrate used to score U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and affords protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an an institution's financial fortitude, capital is useful. When it comes to safety and soundness, the more capital, the better.

CU COMMUNITY racked up 22 out of a possible 30 points on our test to measure capital adequacy, exceeding the national average of 15.26.

CU COMMUNITY had a capitalization ratio of 15.00 percent in our test, higher than the average for all credit unions, an indication that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid mortgages.

A credit union with extensive holdings of these types of assets may eventually be required to use capital to cover losses, decreasing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, reducing earnings and increasing the risk of a failure in the future.

On Bankrate's asset quality test, CU COMMUNITY scored 40 out of a possible 40 points, above the national average of 38.15 points.

Troubled assets made up 0.00 percent of CU COMMUNITY's total assets in our test, less than the national average and potentially indicative of superior financial strength compared to other credit unions.

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, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better able to withstand financial shocks. Credit unions that are losing money, however, have less ability to do those things.

CU COMMUNITY beat the national average on Bankrate's earnings test, achieving a score of 18 out of a possible 30.

One sign that CU COMMUNITY is outperforming its peers in this area was its earnings ratio of 8.00 percent in our test, better 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.