Safe and Sound

ENCENTUS

Tulsa, OK
4
Star Rating
Started in 1970, ENCENTUS is an NCUA-insured credit union headquartered in Tulsa, OK. Regulatory filings show the credit union having $27.3 million in assets, as of December 31, 2017.

With 10 full-time employees, the credit union has amassed loans and leases worth $21.3 million. ENCENTUS's 4,820 members currently have $22.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ENCENTUS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three key criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and provides protection for members when a credit union is experiencing financial instability. It follows then that when it comes to measuring an a credit union's financial strength, capital is useful. When looking at safety and soundness, more capital is preferred.

ENCENTUS racked up 16 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, above the national average of 15.65.

ENCENTUS had a capitalization ratio of 16.00 percent in our test, identical the average for all credit unions, a sign that it's running neck and neck with its peers.

Asset Quality Score

Bankrate uses this test to estimate the impact of problem assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

Having extensive holdings of these types of assets could eventually force a credit union to use capital to absorb losses, cutting down on its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, pushing down earnings and increasing the chances of a failure in the future.

ENCENTUS scored 36 out of a possible 40 points on Bankrate's test of asset quality, coming in below the national average of 38.09.

The credit union's ratio of problem assets was 0.00 percent in our test, beneath the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or use them to address problematic loans, potentially making the credit union better able to withstand economic trouble. However, credit unions that are losing money have less ability to do those things.

ENCENTUS scored 6 out of a possible 30 on Bankrate's test of earnings, failing to reach the national average of 10.11.

One sign that ENCENTUS is running ahead of 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.