Safe and Sound

CENTRAL OKLAHOMA

Davenport, OK
3
Star Rating
Davenport, OK-based CENTRAL OKLAHOMA is an NCUA-insured credit union started in 1988. Regulatory filings show the credit union having assets of $31.2 million, as of December 31, 2017.

With 14 full-time employees, the credit union currently holds loans and leases worth $18.6 million. Its 2,832 members currently have $26.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CENTRAL OKLAHOMA exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three major criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of an institution's financial fortitude. It acts as a cushion against losses and as protection for members when a credit union is struggling financially. When looking at safety and soundness, more capital is preferred.

CENTRAL OKLAHOMA beat out the national average of 15.65 points on our test to measure capital adequacy, achieving a score of 20 out of a possible 30 points.

CENTRAL OKLAHOMA's capitalization ratio of 20.00 percent in our test was higher than the average for all credit unions, an indication that it's more well prepared for financial trouble than its peers.

Asset Quality Score

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

Having extensive holdings of these types of assets suggests a credit union may eventually have to use capital to absorb losses, diminishing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, reducing earnings and elevating the chances of a failure in the future.

CENTRAL OKLAHOMA scored 36 out of a possible 40 points on Bankrate's test of asset quality, coming in below the national average of 38.09.

A below-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 affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand financial trouble. However, credit unions that are losing money are less able to do those things.

CENTRAL OKLAHOMA fell behind the national average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign 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.