Safe and Sound

COMMUNITYAMERICA

KANSAS CITY, MO
4
Star Rating
COMMUNITYAMERICA is an NCUA-insured credit union started in 1940 and currently based in KANSAS CITY, MO. The credit union has $2.57 billion in assets, according to December 31, 2017, regulatory filings.

With 786 full-time employees, the credit union has amassed loans and leases worth $1.64 billion. COMMUNITYAMERICA's 219,036 members currently have $2.04 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, COMMUNITYAMERICA 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 major criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial fortitude, capital is crucial. It acts as a cushion against losses and affords protection for members during periods of economic instability for the credit union. From a safety and soundness perspective, more capital is preferred.

COMMUNITYAMERICA received a score of 14 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, falling short of the national average of 15.65.

COMMUNITYAMERICA had a capitalization ratio of 14.00 percent in our test, worse than the average for all credit unions, an indication that it's less well prepared for financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of problem assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.

A credit union with extensive holdings of these types of assets may eventually be required to use capital to absorb losses, decreasing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in depressed earnings and potentially more risk of a failure in the future.

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

A lower-than-average ratio of troubled 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 profitability has an effect on its long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, likely making the credit union better prepared to withstand financial shocks. Credit unions that are losing money, however, have less ability to do those things.

COMMUNITYAMERICA exceeded the national average on Bankrate's earnings test, achieving a score of 12 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, above 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.