Safe and Sound

CAPE REGIONAL

Cape Girardeau, MO
3
Star Rating
Cape Girardeau, MO-based CAPE REGIONAL is an NCUA-insured credit union started in 1971. The credit union holds $14.8 million in assets, according to December 31, 2017, regulatory filings.

With 5 full-time employees, the credit union holds loans and leases worth $7.0 million. Its 3,256 members currently have $13.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CAPE REGIONAL exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three major criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an a credit union's financial fortitude, capital is valuable. When it comes to safety and soundness, the more capital, the better.

CAPE REGIONAL received a score of 6 out of a possible 30 points on our test to measure capital adequacy, failing to reach the national average of 15.65.

CAPE REGIONAL had a capitalization ratio of 6.00 percent in our test, worse than the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of problem assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.

Having a large number of these types of assets suggests a credit union could eventually have to use capital to cover losses, cutting down on 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 money, reducing earnings and increasing the chances of a future failure.

CAPE REGIONAL scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating the national average of 38.09.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, beneath 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 safety and soundness. Earnings may be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in tough times. Obviously, credit unions that are losing money have less ability to do those things.

CAPE REGIONAL scored 4 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 10.11.

One sign that CAPE REGIONAL is beating 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.