Safe and Sound

MCDOWELL CORNERSTONE

MARION, NC
5
Star Rating
MARION, NC-based MCDOWELL CORNERSTONE is an NCUA-insured credit union started in 1967. The credit union holds assets of $26.7 million, according to December 31, 2017, regulatory filings.

Members have $12.3 million on deposit tended by 7 full-time employees. With that footprint, the credit union currently holds loans and leases worth $12.3 million. MCDOWELL CORNERSTONE's 2,965 members currently have $21.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MCDOWELL CORNERSTONE exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three important criteria Bankrate used to evaluate 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 cushion against losses and affords protection for members when a credit union is struggling financially. Therefore, an institution's level of capital is an essential measurement of its financial resilience. From a safety and soundness perspective, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, MCDOWELL CORNERSTONE scored 28 out of a possible 30 points, exceeding the national average of 15.65.

MCDOWELL CORNERSTONE's capitalization ratio of 28.00 percent in our test was higher than the average for all credit unions, a sign that it's on more solid financial footing than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the effect of problem assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

Having large numbers of these types of assets could eventually force a credit union to use capital to cover losses, diminishing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a failure in the future.

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

MCDOWELL CORNERSTONE's ratio of troubled assets was 0.00 percent in our test, beneath the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. Earnings may be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in tough times. Losses, on the other hand, lessen a credit union's ability to do those things.

MCDOWELL CORNERSTONE scored 6 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 10.11.

MCDOWELL CORNERSTONE had an earnings ratio of 0.00 percent in our test, higher 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.