Safe and Sound

CHARLOTTE METRO

CHARLOTTE, NC
5
Star Rating
CHARLOTTE, NC-based CHARLOTTE METRO is an NCUA-insured credit union founded in 1962. The credit union holds $468.5 million in assets, according to December 31, 2017, regulatory filings.

With 131 full-time employees, the credit union currently holds loans and leases worth $356.9 million. CHARLOTTE METRO's 54,640 members currently have $363.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CHARLOTTE METRO exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to grade U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and provides protection for members when a credit union is struggling financially. Therefore, an institution's level of capital is a valuable measurement of its financial fortitude. When looking at safety and soundness, the more capital, the better.

CHARLOTTE METRO fell short of the national average of 15.65 on our test to measure capital adequacy, scoring 12 out of a possible 30 points.

CHARLOTTE METRO's capitalization ratio of 12.00 percent in our test was worse than the average for all credit unions, a sign that it could be less resilient in a crisis than its peers.

Asset Quality Score

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

Having lots of these types of assets means a credit union could have to use capital to cover losses, reducing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, diminishing earnings and elevating the risk of a failure in the future.

On Bankrate's asset quality test, CHARLOTTE METRO scored 40 out of a possible 40 points, beating out the national average of 38.09 points.

The credit union's ratio of problem assets was 0.00 percent in our test, less than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its long-term survivability. Earnings can be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. However, credit unions that are losing money are less able to do those things.

CHARLOTTE METRO scored 20 out of a possible 30 on Bankrate's earnings test, beating out the national average of 10.11.

One indication that CHARLOTTE METRO is beating its peers in this area was its earnings ratio of 0.00 percent in our test, higher than 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.