Safe and Sound

CASCADE COMMUNITY

Roseburg, OR
5
Star Rating
Started in 1948, CASCADE COMMUNITY is an NCUA-insured credit union based in Roseburg, OR. As of December 31, 2017, the credit union had assets of $222.3 million.

Members have $105.5 million on deposit tended by 38 full-time employees. With that footprint, the credit union has amassed loans and leases worth $105.5 million. CASCADE COMMUNITY's 13,921 members currently have $193.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CASCADE COMMUNITY 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 score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members during times of economic trouble for the credit union. Therefore, a credit union's level of capital is an essential measurement of its financial resilience. 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, CASCADE COMMUNITY achieved a score of 16 out of a possible 30 points, beating the national average of 15.65.

CASCADE COMMUNITY had a capitalization ratio of 16.00 percent in our test, identical the average for all credit unions, a sign that it's right in line with its peers.

Asset Quality Score

Bankrate uses this test to estimate the effect of troubled assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with lots of these types of assets could eventually have to use capital to cover losses, shrinking its buffer of equity. 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 depressed earnings and potentially more risk of a future failure.

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

CASCADE COMMUNITY's ratio of troubled assets was 0.00 percent 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, boosting its capital buffer, or use them to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses lessen a credit union's ability to do those things.

CASCADE COMMUNITY exceeded the national average on Bankrate's test of earnings, achieving a score of 16 out of a possible 30.

CASCADE COMMUNITY had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting 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.