Safe and Sound

CHEROKEE COUNTY

RUSK, TX
5
Star Rating
CHEROKEE COUNTY is a RUSK, TX-based, NCUA-insured credit union founded in 1960. As of December 31, 2017, the credit union held assets of $32.8 million.

With 11 full-time employees, the credit union currently holds loans and leases worth $20.5 million. Its 4,221 members currently have $25.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CHEROKEE COUNTY exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three major criteria Bankrate used to evaluate American credit unions on safety and soundness.

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 bulwark against losses and as protection for members when a credit union is experiencing financial trouble. When it comes to safety and soundness, more capital is better.

CHEROKEE COUNTY did better than the national average of 15.65 points on our test to measure capital adequacy, scoring 30 out of a possible 30 points.

CHEROKEE COUNTY appears to be stronger than its peers, with a capitalization ratio of 30.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the effect of problem assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

A credit union with lots of these kinds of assets 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 interest for the credit union, resulting in diminished earnings and potentially more risk of a future failure.

CHEROKEE COUNTY scored 40 out of a possible 40 points on Bankrate's test of asset quality, better than the national average of 38.09.

Troubled assets made up 0.00 percent of CHEROKEE COUNTY's total assets in our test, less than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Losses, on the other hand, reduce a credit union's ability to do those things.

CHEROKEE COUNTY scored 10 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.11.

CHEROKEE COUNTY had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication that it's doing better than 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.