Safe and Sound

COPOCO COMMUNITY

BAY CITY, MI
3
Star Rating
Founded in 1951, COPOCO COMMUNITY is an NCUA-insured credit union based in BAY CITY, MI. The credit union holds assets of $98.4 million, according to December 31, 2017, regulatory filings.

With 37 full-time employees, the credit union holds loans and leases worth $64.5 million. COPOCO COMMUNITY's 13,047 members currently have $89.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, COPOCO COMMUNITY exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

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

On our test to measure the adequacy of a credit union's capital, COPOCO COMMUNITY received a score of 4 out of a possible 30 points, lower than the national average of 15.65.

COPOCO COMMUNITY had a capitalization ratio of 4.00 percent in our test, less than the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the effect of troubled assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having a large number of these types of assets means a credit union could eventually have to use capital to cover losses, diminishing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, pushing down earnings and increasing the risk of a failure in the future.

COPOCO COMMUNITY scored 36 out of a possible 40 points on Bankrate's test of asset quality, falling short of the national average of 38.09.

A below-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 affects its safety and soundness. Earnings may be retained by the credit union, boosting its capital cushion, or be used to address problematic loans, potentially making the credit union better prepared to withstand financial shocks. Losses, on the other hand, reduce a credit union's ability to do those things.

COPOCO COMMUNITY did below-average on Bankrate's earnings test, achieving a score of 8 out of a possible 30.

COPOCO COMMUNITY had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, an indication that it's beating 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.