Safe and Sound

TRUE SKY

OKLAHOMA CITY, OK
3
Star Rating
OKLAHOMA CITY, OK-based TRUE SKY is an NCUA-insured credit union founded in 1946. Regulatory filings show the credit union having assets of $588.4 million, as of June 30, 2017.

Members have $340.4 million on deposit tended by 143 full-time employees. With that footprint, the credit union holds loans and leases worth $340.4 million. TRUE SKY's 50,166 members currently have $530.6 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, TRUE SKY exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major criteria Bankrate used to score American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides protection for members during periods of financial instability for the credit union. Therefore, when it comes to measuring an a credit union's financial resilience, capital is important. When it comes to safety and soundness, more capital is preferred.

TRUE SKY received a score of 8 out of a possible 30 points on our test to measure capital adequacy, lower than the national average of 15.26.

TRUE SKY's capitalization ratio of 9.00 percent in our test was less than the average for all credit unions, a sign that it's on less solid financial footing than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the impact of problem assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with a large number of these kinds of assets may eventually be required to use capital to absorb losses, shrinking 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 interest for the credit union, resulting in lower earnings and potentially more risk of a failure in the future.

TRUE SKY did better than the national average of 38.15 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

TRUE SKY's ratio of troubled assets was 4.00 percent in our test, below the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. Earnings may be retained by the credit union, boosting its capital cushion, or be used to address problematic loans, likely making the credit union better prepared to withstand economic trouble. Conversely, losses reduce a credit union's ability to do those things.

TRUE SKY underperformed the average on Bankrate's earnings test, achieving a score of 4 out of a possible 30.

One indication that TRUE SKY is outperforming its peers in this area was its earnings ratio of 2.00 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.