Safe and Sound

CHEROKEE STRIP

PONCA CITY, OK
4
Star Rating
Founded in 1933, CHEROKEE STRIP is an NCUA-insured credit union based in PONCA CITY, OK. The credit union holds assets of $69.4 million, according to December 31, 2017, regulatory filings.

Members have $44.9 million on deposit tended by 22 full-time employees. With that footprint, the credit union currently holds loans and leases worth $44.9 million. Its 9,461 members currently have $64.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CHEROKEE STRIP exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three important criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of an institution's financial fortitude. It works as a cushion against losses and provides protection for members when a credit union is struggling financially. When it comes to safety and soundness, the more capital, the better.

CHEROKEE STRIP scored below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, racking up 6 out of a possible 30 points.

CHEROKEE STRIP appears to be weaker than its peers in this area, with a capitalization ratio of 6.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to estimate the impact of troubled assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

A credit union with large numbers of these kinds of assets could eventually have to use capital to absorb losses, shrinking its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in depressed earnings and potentially more risk of a future failure.

CHEROKEE STRIP scored 32 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 the credit union'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 ability to earn money affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand economic trouble. Obviously, credit unions that are losing money are less able to do those things.

CHEROKEE STRIP did above-average on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.

CHEROKEE STRIP 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.