Safe and Sound

CHOPTANK ELECTRIC COOP EMPLOY

Denton, MD
5
Star Rating
CHOPTANK ELECTRIC COOP EMPLOY is an NCUA-insured credit union founded in 1971 and currently headquartered in Denton, MD. As of December 31, 2017, the credit union held assets of $3.0 million.

The credit union has amassed loans and leases worth $641,426. CHOPTANK ELECTRIC COOP EMPLOY's 310 members currently have $2.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CHOPTANK ELECTRIC COOP EMPLOY 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?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and as protection for members when a credit union is struggling financially. It follows then that a credit union's level of capital is a useful measurement of its financial strength. When looking at safety and soundness, the more capital, the better.

On our test to measure capital adequacy, CHOPTANK ELECTRIC COOP EMPLOY racked up 30 out of a possible 30 points, beating the national average of 15.65.

CHOPTANK ELECTRIC COOP EMPLOY's capitalization ratio of 30.00 percent in our test was above the average for all credit unions, suggesting that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

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

Having extensive holdings of these types of assets could eventually require a credit union to use capital to cover losses, shrinking its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in depressed earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, CHOPTANK ELECTRIC COOP EMPLOY scored 40 out of a possible 40 points, beating the national average of 38.09 points.

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

Earnings score

How successful a credit union is at earning money affects its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, likely making the credit union better prepared to withstand financial shocks. Losses, on the other hand, reduce a credit union's ability to do those things.

On Bankrate's earnings test, CHOPTANK ELECTRIC COOP EMPLOY scored 12 out of a possible 30, better than the national average of 10.11.

CHOPTANK ELECTRIC COOP EMPLOY had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's outperforming 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.