Safe and Sound

CAPITOL VIEW

DES MOINES, IA
5
Star Rating
CAPITOL VIEW is a DES MOINES, IA-based, NCUA-insured credit union dating back to 1944. The credit union has $34.4 million in assets, according to December 31, 2017, regulatory filings.

With 7 full-time employees, the credit union holds loans and leases worth $21.5 million. Its 1,994 members currently have $28.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CAPITOL VIEW exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three key criteria Bankrate used to score American credit unions on safety and soundness.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is essential. It works as a buffer against losses and provides protection for members during times of financial instability for the credit union. When looking at safety and soundness, the more capital, the better.

CAPITOL VIEW exceeded the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, achieving a score of 22 out of a possible 30 points.

CAPITOL VIEW appears to be stronger than its peers, with a capitalization ratio of 22.00 percent in our test, above the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the effect of troubled assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

Having large numbers of these types of assets means a credit union may have to use capital to absorb losses, reducing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a failure in the future.

CAPITOL VIEW scored above the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

Troubled assets made up 0.00 percent of CAPITOL VIEW's total assets in our test, beneath the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. Credit unions that are losing money, however, have less ability to do those things.

CAPITOL VIEW did above-average on Bankrate's earnings test, achieving a score of 12 out of a possible 30.

CAPITOL VIEW had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication that it's doing better than 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.