Safe and Sound

CENTRAL COMMUNICATIONS

Independence, MO
2
Star Rating
Independence, MO-based CENTRAL COMMUNICATIONS is an NCUA-insured credit union founded in 1935. The credit union holds $49.7 million in assets, according to December 31, 2017, regulatory filings.

Members have $21.6 million on deposit tended by 20 full-time employees. With that footprint, the credit union holds loans and leases worth $21.6 million. Its 5,573 members currently have $42.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CENTRAL COMMUNICATIONS exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three major criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of a credit union's financial resilience. It acts as a cushion against losses and affords protection for members during times of financial trouble for the credit union. When it comes to safety and soundness, more capital is preferred.

CENTRAL COMMUNICATIONS received a score of 6 out of a possible 30 points on our test to measure capital adequacy, less than the national average of 15.65.

CENTRAL COMMUNICATIONS's capitalization ratio of 6.00 percent in our test was less than the average for all credit unions, a sign that it's less well prepared for financial trouble than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as past-due mortgages.

A credit union with lots of these types of assets could eventually be required 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 thus aren't earning interest for the credit union, decreasing earnings and elevating the risk of a future failure.

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

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative 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 address problematic loans, likely making the credit union better able to withstand financial shocks. However, credit unions that are losing money have less ability to do those things.

CENTRAL COMMUNICATIONS scored 0 out of a possible 30 on Bankrate's earnings test, below the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's running ahead of 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.