Safe and Sound

ARBUCKLE

ADA, OK
3
Star Rating
ARBUCKLE is an ADA, OK-based, NCUA-insured credit union started in 1966. Regulatory filings show the credit union having assets of $7.5 million, as of December 31, 2017.

With 2 full-time employees, the credit union has amassed loans and leases worth $6.0 million. ARBUCKLE's 987 members currently have $6.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ARBUCKLE exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three important criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is crucial. It works 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 better.

On our test to measure the adequacy of a credit union's capital, ARBUCKLE received a score of 6 out of a possible 30 points, lower than the national average of 15.65.

ARBUCKLE had a capitalization ratio of 6.00 percent in our test, less than the average for all credit unions, an indication that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

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

Having large numbers of these types of assets could eventually require a credit union to use capital to cover losses, decreasing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, pushing down earnings and elevating the risk of a failure in the future.

On Bankrate's test of asset quality, ARBUCKLE scored 40 out of a possible 40 points, above the national average of 38.09 points.

A lower-than-average ratio of problem assets of 0.00 percent in our test was 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 use them to address problematic loans, likely making the credit union more resilient in tough times. Conversely, losses lessen a credit union's ability to do those things.

ARBUCKLE received below-average marks on Bankrate's test of earnings, achieving a score of 6 out of a possible 30.

One indication that ARBUCKLE is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.