Safe and Sound

COMMUNITYWIDE

SOUTH BEND, IN
5
Star Rating
COMMUNITYWIDE is a SOUTH BEND, IN-based, NCUA-insured credit union started in 1967. As of December 31, 2017, the credit union held assets of $410.9 million.

Thanks to the efforts of 77 full-time employees, the credit union holds loans and leases worth $362.6 million. COMMUNITYWIDE's 47,332 members currently have $281.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, COMMUNITYWIDE exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three key criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and provides protection for members when a credit union is struggling financially. Therefore, an institution's level of capital is a key measurement of its financial strength. When looking at safety and soundness, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, COMMUNITYWIDE scored 24 out of a possible 30 points, beating out the national average of 15.65.

COMMUNITYWIDE appears to be more resilient than its peers, with a capitalization ratio of 24.00 percent in our test, above the average for all credit unions.

Asset Quality Score

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

Having large numbers of these types of assets means a credit union may eventually have to use capital to absorb losses, cutting down on its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, COMMUNITYWIDE scored 32 out of a possible 40 points, less than the national average of 38.09 points.

The credit union's ratio of problem assets was 0.00 percent in our test, lower than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money affects its safety and soundness. A credit union can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand financial trouble. Credit unions that are losing money, however, have less ability to do those things.

COMMUNITYWIDE scored 18 out of a possible 30 on Bankrate's test of earnings, above the national average of 10.11.

COMMUNITYWIDE 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.