Safe and Sound

C O

CHARLESTON, SC
5
Star Rating
CHARLESTON, SC-based C O is an NCUA-insured credit union started in 1966. Regulatory filings show the credit union having assets of $2.5 million, as of December 31, 2017.

The credit union holds loans and leases worth $1.2 million. C O's 577 members currently have $2.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, C O exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three major criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and affords protection for members when a credit union is struggling financially. It follows then that an institution's level of capital is a key measurement of its financial fortitude. 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, C O achieved a score of 24 out of a possible 30 points, better than the national average of 15.65.

C O appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 24.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

This test's purpose is to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as past-due mortgages.

Having large numbers of these types of assets may eventually require a credit union to use capital to absorb losses, diminishing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in depressed earnings and potentially more risk of a failure in the future.

C O scored 36 out of a possible 40 points on Bankrate's asset quality test, falling short of the national average of 38.09.

A below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. A credit union can retain its earnings, increasing its capital cushion, or use them 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.

C O beat the national average on Bankrate's test of earnings, achieving a score of 20 out of a possible 30.

C O had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, an indication that it's outperforming its peers in this area.

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.