Safe and Sound

CLACKAMAS COMMUNITY

Oregon City, OR
4
Star Rating
Oregon City, OR-based CLACKAMAS COMMUNITY is an NCUA-insured credit union started in 1957. The credit union has assets of $365.4 million, according to December 31, 2017, regulatory filings.

With 100 full-time employees, the credit union holds loans and leases worth $276.2 million. Its 31,046 members currently have $326.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CLACKAMAS COMMUNITY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three important criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is crucial. It works as a cushion against losses and affords protection for members during times of financial trouble for the credit union. When it comes to safety and soundness, more capital is better.

CLACKAMAS COMMUNITY received a score of 10 out of a possible 30 points on our test to measure capital adequacy, coming in below the national average of 15.65.

CLACKAMAS COMMUNITY's capitalization ratio of 10.00 percent in our test was worse than the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as unpaid loans.

A credit union with lots of these kinds of assets may eventually have to use capital to cover losses, shrinking its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, diminishing earnings and elevating the chances of a future failure.

CLACKAMAS COMMUNITY exceeded the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. Earnings may be retained by the credit union, boosting its capital cushion, or be used to deal with problematic loans, likely making the credit union better prepared to withstand economic trouble. Conversely, losses lessen a credit union's ability to do those things.

CLACKAMAS COMMUNITY beat the national average on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.

CLACKAMAS COMMUNITY had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting 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.