Safe and Sound

OKLAHOMA CENTRAL

Tulsa, OK
4
Star Rating
Started in 1941, OKLAHOMA CENTRAL is an NCUA-insured credit union based in Tulsa, OK. The credit union has $544.8 million in assets, according to June 30, 2017, regulatory filings.

Members have $353.1 million on deposit tended by 113 full-time employees. With that footprint, the credit union currently holds loans and leases worth $353.1 million. OKLAHOMA CENTRAL's 43,319 members currently have $469.3 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, OKLAHOMA CENTRAL exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three major criteria Bankrate used to grade American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is crucial. It acts as a cushion against losses and as protection for members when a credit union is struggling financially. From a safety and soundness perspective, more capital is preferred.

OKLAHOMA CENTRAL scored 18 out of a possible 30 points on our test to measure capital adequacy, better than the national average of 15.26.

OKLAHOMA CENTRAL had a capitalization ratio of 13.00 percent in our test, identical the average for all credit unions, an indication that it's right in line with its peers.

Asset Quality Score

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

A credit union with a large number of these types of assets could eventually be required to use capital to cover losses, shrinking its equity buffer. 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 chances of a failure in the future.

OKLAHOMA CENTRAL scored 40 out of a possible 40 points on Bankrate's asset quality test, exceeding the national average of 38.15.

The credit union's ratio of troubled assets was 5.00 percent in our test, below the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. A credit union can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's earnings test, OKLAHOMA CENTRAL scored 10 out of a possible 30, less than the national average of 10.31.

One sign that OKLAHOMA CENTRAL is running ahead of its peers in this area was its earnings ratio of 4.00 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.