Safe and Sound

COMMODORE PERRY

OAK HARBOR, OH
2
Star Rating
Founded in 1975, COMMODORE PERRY is an NCUA-insured credit union headquartered in OAK HARBOR, OH. As of December 31, 2017, the credit union held assets of $41.6 million.

Members have $32.4 million on deposit tended by 17 full-time employees. With that footprint, the credit union holds loans and leases worth $32.4 million. Its 6,073 members currently have $38.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, COMMODORE PERRY exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three important criteria Bankrate used to evaluate American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and as protection for members during periods of economic instability for the credit union. It follows then that an institution's level of capital is a key measurement of its financial strength. When looking at safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, COMMODORE PERRY received a score of 4 out of a possible 30 points, falling short of the national average of 15.65.

COMMODORE PERRY appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 4.00 percent in our test, below the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with large numbers of these kinds of assets may eventually be forced to use capital to absorb losses, diminishing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, diminishing earnings and increasing the chances of a failure in the future.

COMMODORE PERRY scored 28 out of a possible 40 points on Bankrate's test of asset quality, failing to reach the national average of 38.09.

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance affects its long-term survivability. A credit union can retain its earnings, boosting its capital cushion, or use them to deal with problematic loans, potentially making the credit union better able to withstand financial shocks. Losses, on the other hand, reduce a credit union's ability to do those things.

COMMODORE PERRY scored 0 out of a possible 30 on Bankrate's test of earnings, coming in below the national average of 10.11.

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