THE INSTITUTION'S SCORE
Capital acts as a cushion against losses and as protection for members when a credit union is struggling financially. Therefore, an institution's level of capital is a key measurement of its financial strength. From a safety and soundness perspective, the higher the capital, the better.
On our test to measure the adequacy of a credit union's capital, ABCO received a score of 6 out of a possible 30 points, below the national average of 15.65.
ABCO appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 6.00 percent in our test, less than the average for all credit unions.