Safe and Sound

CORNERSTONE COMMUNITY

LOCKPORT, NY
3
Star Rating
CORNERSTONE COMMUNITY is an NCUA-insured credit union started in 1957 and currently headquartered in LOCKPORT, NY. Regulatory filings show the credit union having assets of $422.7 million, as of December 31, 2017.

Thanks to the efforts of 109 full-time employees, the credit union holds loans and leases worth $252.5 million. CORNERSTONE COMMUNITY's 48,614 members currently have $391.3 million in shares with the credit union.

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

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is essential. It works as a buffer against losses and as protection for members during periods of economic instability for the credit union. From a safety and soundness perspective, the more capital, the better.

CORNERSTONE COMMUNITY fell below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, racking up 4 out of a possible 30 points.

CORNERSTONE COMMUNITY appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 4.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

This test's purpose is to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid mortgages.

A credit union with extensive holdings of these kinds of assets may eventually be forced to use capital to cover losses, cutting down on its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

CORNERSTONE COMMUNITY scored 40 out of a possible 40 points on Bankrate's asset quality test, above the national average of 38.09.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand economic shocks. However, credit unions that are losing money have less ability to do those things.

CORNERSTONE COMMUNITY received below-average marks on Bankrate's earnings test, achieving a score of 6 out of a possible 30.

One indication that CORNERSTONE COMMUNITY is beating its peers in this area was its earnings ratio of 0.00 percent in our test, above the average for all credit unions.

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.