Safe and Sound

CENTRAL MISSOURI COMMUNITY

Warrensburg, MO
3
Star Rating
Started in 1961, CENTRAL MISSOURI COMMUNITY is an NCUA-insured credit union based in Warrensburg, MO. The credit union holds assets of $100.6 million, according to December 31, 2017, regulatory filings.

Members have $69.9 million on deposit tended by 42 full-time employees. With that footprint, the credit union has amassed loans and leases worth $69.9 million. CENTRAL MISSOURI COMMUNITY's 16,486 members currently have $92.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CENTRAL MISSOURI COMMUNITY exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three important criteria Bankrate used to grade U.S. credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial stability, capital is useful. When it comes to safety and soundness, the higher the capital, the better.

CENTRAL MISSOURI COMMUNITY received a score of 8 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, below the national average of 15.65.

CENTRAL MISSOURI COMMUNITY appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 8.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

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

Having lots of these kinds of assets may eventually require a credit union to use capital to cover losses, reducing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, pushing down earnings and increasing the risk of a future failure.

CENTRAL MISSOURI COMMUNITY beat out the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money affects its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's test of earnings, CENTRAL MISSOURI COMMUNITY scored 6 out of a possible 30, failing to reach the national average of 10.11.

One indication that CENTRAL MISSOURI COMMUNITY 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.