Safe and Sound

COMPASS

OSWEGO, NY
5
Star Rating
OSWEGO, NY-based COMPASS is an NCUA-insured credit union founded in 1966. Regulatory filings show the credit union having $56.3 million in assets, as of December 31, 2017.

Members have $32.7 million on deposit tended by 12 full-time employees. With that footprint, the credit union currently holds loans and leases worth $32.7 million. Its 7,381 members currently have $46.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, COMPASS exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three major criteria Bankrate used to grade U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and as protection for members when a credit union is struggling financially. It follows then that a credit union's level of capital is a key measurement of its financial resilience. When it comes to safety and soundness, the more capital, the better.

COMPASS beat out the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, racking up 22 out of a possible 30 points.

COMPASS had a capitalization ratio of 22.00 percent in our test, higher than the average for all credit unions, a sign that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the impact of problem assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

Having a large number of these kinds of assets may eventually require a credit union to use capital to cover losses, cutting down on its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, diminishing earnings and elevating the risk of a future failure.

COMPASS did better than the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 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

How successful a credit union is at earning money has an effect on its long-term survivability. Earnings can be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, likely making the credit union better able to withstand financial shocks. Credit unions that are losing money, however, have less ability to do those things.

COMPASS exceeded the national average on Bankrate's test of earnings, achieving a score of 16 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication 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.