THE INSTITUTION'S SCORE
Capital acts as a cushion against losses and provides protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an an institution's financial strength, capital is crucial. When looking at safety and soundness, the more capital, the better.
COMMUNITY STAR scored below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, achieving a score of 8 out of a possible 30 points.
COMMUNITY STAR had a capitalization ratio of 8.00 percent in our test, lower than the average for all credit unions, an indication that it's less well prepared for financial trouble than its peers.