Safe and Sound

CHAMPION

Canton, NC
4
Star Rating
CHAMPION is a Canton, NC-based, NCUA-insured credit union started in 1932. The credit union has $269.8 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the work of 78 full-time employees, the credit union currently holds loans and leases worth $235.2 million. CHAMPION's 25,194 members currently have $217.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CHAMPION exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three major criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides protection for members during times of financial instability for the credit union. It follows then that an institution's level of capital is an essential measurement of its financial fortitude. From a safety and soundness perspective, more capital is better.

CHAMPION received a score of 14 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, lower than the national average of 15.65.

CHAMPION had a capitalization ratio of 14.00 percent in our test, lower than the average for all credit unions, a sign that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as unpaid mortgages.

Having extensive holdings of these types of assets could eventually force a credit union to use capital to absorb losses, reducing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, decreasing earnings and elevating the chances of a failure in the future.

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

Troubled assets made up 0.00 percent of CHAMPION's total assets in our test, beneath the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its long-term survivability. Earnings may be retained by the credit union, boosting its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. Credit unions that are losing money, however, are less able to do those things.

CHAMPION scored 18 out of a possible 30 on Bankrate's test of earnings, beating the national average of 10.11.

CHAMPION had an earnings ratio of 0.00 percent in our test, better than 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.