THE INSTITUTION'S SCORE
Capital acts as a cushion against losses and as protection for members when a credit union is experiencing economic instability. Therefore, when it comes to measuring an an institution's financial fortitude, capital is important. When it comes to safety and soundness, the higher the capital, the better.
On our test to measure capital adequacy, CREDIT UNION 1 received a score of 14 out of a possible 30 points, coming in below the national average of 15.65.
CREDIT UNION 1's capitalization ratio of 14.00 percent in our test was below the average for all credit unions, a sign that it could have a harder time weathering financial trouble than its peers.