Safe and Sound

CU COMMUNITY

SPRINGFIELD, MO
5
Star Rating
CU COMMUNITY is an NCUA-insured credit union founded in 1934 and currently headquartered in SPRINGFIELD, MO. The credit union holds $111.6 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 35 full-time employees, the credit union holds loans and leases worth $56.5 million. CU COMMUNITY's 11,226 members currently have $91.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CU COMMUNITY exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three important criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members when a credit union is struggling financially. It follows then that an institution's level of capital is a valuable measurement of its financial resilience. When looking at safety and soundness, the higher the capital, the better.

CU COMMUNITY beat out the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, racking up 24 out of a possible 30 points.

CU COMMUNITY had a capitalization ratio of 24.00 percent in our test, above the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as past-due loans.

Having extensive holdings of these types of assets suggests a credit union could 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 interest for the credit union, resulting in diminished earnings and potentially more risk of a future failure.

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

Troubled assets made up 0.00 percent of CU COMMUNITY's total assets in our test, less than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. Earnings can be retained by the credit union, giving a boost to its capital cushion, or be used to address problematic loans, potentially making the credit union better prepared to withstand economic shocks. However, credit unions that are losing money are less able to do those things.

CU COMMUNITY received above-average marks on Bankrate's earnings test, achieving a score of 20 out of a possible 30.

CU COMMUNITY had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting 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.