Safe and Sound

COLUMBIA

Columbia, MO
4
Star Rating
Columbia, MO-based COLUMBIA is an NCUA-insured credit union started in 1935. Regulatory filings show the credit union having assets of $21.8 million, as of December 31, 2017.

With 6 full-time employees, the credit union has amassed loans and leases worth $13.3 million. COLUMBIA's 2,494 members currently have $20.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, COLUMBIA exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three key criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members when a credit union is experiencing economic trouble. It follows then that a credit union's level of capital is a crucial measurement of its financial fortitude. When looking at safety and soundness, more capital is preferred.

COLUMBIA finished below the national average of 15.65 on our test to measure capital adequacy, achieving a score of 6 out of a possible 30 points.

COLUMBIA had a capitalization ratio of 6.00 percent in our test, below the average for all credit unions, an indication that it's weaker than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as unpaid loans.

A credit union with lots of these types of assets could eventually be required to use capital to absorb losses, cutting down on its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, decreasing earnings and increasing the risk of a failure in the future.

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

COLUMBIA's ratio of problem assets was 0.00 percent 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 safety and soundness. A credit union can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, likely making the credit union better prepared to withstand economic trouble. However, credit unions that are losing money are less able to do those things.

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

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's running ahead of 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.