Safe and Sound

COMMUNITY CONNECT

Titusville, PA
4
Star Rating
COMMUNITY CONNECT is an NCUA-insured credit union started in 1956 and currently based in TITUSVILLE, PA. The credit union holds assets of $17.3 million, according to December 31, 2017, regulatory filings.

Members have $10.0 million on deposit tended by 8 full-time employees. With that footprint, the credit union holds loans and leases worth $10.0 million. Its 2,877 members currently have $15.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, COMMUNITY CONNECT exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to evaluate U.S. 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 as protection for members when a credit union is experiencing economic trouble. It follows then that a credit union's level of capital is a valuable measurement of its financial resilience. From a safety and soundness perspective, more capital is better.

COMMUNITY CONNECT exceeded the national average of 15.65 points on our test to measure capital adequacy, receiving a score of 16 out of a possible 30 points.

COMMUNITY CONNECT's capitalization ratio of 16.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

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

Having large numbers of these kinds of assets may eventually force a credit union to use capital to absorb losses, diminishing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a failure in the future.

COMMUNITY CONNECT scored 40 out of a possible 40 points on Bankrate's asset quality test, better than the national average of 38.09.

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

Earnings score

A credit union's profitability 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 trouble. Conversely, losses lessen a credit union's ability to do those things.

COMMUNITY CONNECT scored 2 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 10.11.

One sign that the credit union is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, above the average for all credit unions.

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.