Safe and Sound

CAROLINA COOPERATIVE

CHARLOTTE, NC
4
Star Rating
CAROLINA COOPERATIVE is an NCUA-insured credit union founded in 1962 and currently based in CHARLOTTE, NC. Regulatory filings show the credit union having $38.9 million in assets, as of December 31, 2017.

Thanks to the work of 16 full-time employees, the credit union has amassed loans and leases worth $25.3 million. CAROLINA COOPERATIVE's 8,572 members currently have $34.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CAROLINA COOPERATIVE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three key criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is key. It works as a cushion against losses and affords protection for members when a credit union is experiencing economic trouble. From a safety and soundness perspective, the higher the capital, the better.

CAROLINA COOPERATIVE received a score of 14 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, lower than the national average of 15.65.

CAROLINA COOPERATIVE's capitalization ratio of 14.00 percent in our test was less than the average for all credit unions, a sign that it's on less solid financial footing 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 capitalization and allocated loan loss reserves.

A credit union with a large number of these kinds of assets could eventually be forced to use capital to absorb losses, reducing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

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

CAROLINA COOPERATIVE's ratio of problem assets was 0.00 percent in our test, less than 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 affects its safety and soundness. Earnings can be retained by the credit union, boosting its capital cushion, or be used to address problematic loans, likely making the credit union better prepared to withstand economic shocks. However, credit unions that are losing money have less ability to do those things.

CAROLINA COOPERATIVE scored 10 out of a possible 30 on Bankrate's test of earnings, failing to reach the national average of 10.11.

One sign that the credit union is outperforming 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.