Safe and Sound

C&O UNITED

Edgewood, KY
4
Star Rating
C&O UNITED is an Edgewood, KY-based, NCUA-insured credit union that opened its doors in 1928. As of December 31, 2017, the credit union held assets of $16.0 million.

Members have $4.8 million on deposit tended by 5 full-time employees. With that footprint, the credit union has amassed loans and leases worth $4.8 million. Its 3,704 members currently have $14.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, C&O UNITED exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three major criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides protection for members when a credit union is experiencing financial trouble. It follows then that a credit union's level of capital is an important measurement of its financial resilience. When looking at safety and soundness, more capital is better.

C&O UNITED fell below the national average of 15.65 on our test to measure capital adequacy, scoring 12 out of a possible 30 points.

C&O UNITED's capitalization ratio of 12.00 percent in our test was below the average for all credit unions, a sign that it's less well prepared for financial trouble than its peers.

Asset Quality Score

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

Having large numbers of these kinds of assets suggests a credit union could eventually have to use capital to cover 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 diminished earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, C&O UNITED scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

Troubled assets made up 0.00 percent of C&O UNITED's total assets in our test, less than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability has an effect on its long-term survivability. A credit union can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand economic shocks. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's earnings test, C&O UNITED scored 4 out of a possible 30, falling short of the national average of 10.11.

One indication that the credit union is doing better than its peers in this area was its earnings ratio of 0.00 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.