Safe and Sound

CEDAR POINT

LEXINGTON PARK, MD
4
Star Rating
LEXINGTON PARK, MD-based CEDAR POINT is an NCUA-insured credit union founded in 1945. The credit union holds assets of $471.9 million, according to December 31, 2017, regulatory filings.

Members have $210.3 million on deposit tended by 97 full-time employees. With that footprint, the credit union has amassed loans and leases worth $210.3 million. CEDAR POINT's 43,081 members currently have $425.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CEDAR POINT exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three important criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution'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. When it comes to safety and soundness, the more capital, the better.

CEDAR POINT scored below the national average of 15.65 on our test to measure capital adequacy, racking up 10 out of a possible 30 points.

CEDAR POINT had a capitalization ratio of 10.00 percent in our test, lower than the average for all credit unions, an indication that it's less well prepared for financial trouble than its peers.

Asset Quality Score

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

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

On Bankrate's asset quality test, CEDAR POINT scored 40 out of a possible 40 points, above the national average of 38.09 points.

The credit union's ratio of problem assets was 0.00 percent in our test, lower 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 has an effect on its safety and soundness. Earnings can be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, potentially making the credit union better able to withstand financial trouble. Obviously, credit unions that are losing money have less ability to do those things.

CEDAR POINT beat the national average on Bankrate's earnings test, achieving a score of 14 out of a possible 30.

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