Safe and Sound

CORNERSTONE

Carlisle, PA
3
Star Rating
Started in 1974, CORNERSTONE is an NCUA-insured credit union headquartered in Carlisle, PA. The credit union has assets of $108.5 million, according to June 30, 2017, regulatory filings.

Thanks to the work of 27 full-time employees, the credit union holds loans and leases worth $58.2 million. Its 11,078 members currently have $98.1 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, CORNERSTONE exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three key criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of an institution's financial fortitude. It acts as a cushion against losses and provides protection for members during times of financial trouble for the credit union. When looking at safety and soundness, the more capital, the better.

On our test to measure capital adequacy, CORNERSTONE received a score of 10 out of a possible 30 points, falling short of the national average of 15.26.

CORNERSTONE appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 9.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

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

Having extensive holdings of these types of assets may eventually force a credit union to use capital to absorb losses, diminishing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, diminishing earnings and elevating the chances of a failure in the future.

CORNERSTONE scored 36 out of a possible 40 points on Bankrate's test of asset quality, failing to reach the national average of 38.15.

A higher-than-average ratio of problem assets of 9.00 percent in our test was a potential cause for concern for the credit union.

Earnings score

How successful a credit union is at making money affects its long-term survivability. A credit union can retain its earnings, boosting its capital cushion, or use them to address problematic loans, likely making the credit union better prepared to withstand economic shocks. However, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, CORNERSTONE scored 2 out of a possible 30, coming in below the national average of 10.31.

CORNERSTONE had an earnings ratio of 0.00 percent in our test, lower than the average for all credit unions, suggesting that it's running behind 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.