Safe and Sound

MY CHOICE

Tulsa, OK
2
Star Rating
MY CHOICE is an NCUA-insured credit union started in 1969 and currently headquartered in Tulsa, OK. The credit union holds $1.7 million in assets, according to June 30, 2017, regulatory filings.

Its 641 members currently have $1.0 million in shares with the credit union. With that footprint, the credit union holds loans and leases worth $1.3 million.

Overall, Bankrate believes that, as of June 30, 2017, MY CHOICE exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major criteria Bankrate used to score U.S. credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial fortitude, capital is crucial. It works as a buffer against losses and as protection for members when a credit union is struggling financially. From a safety and soundness perspective, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, MY CHOICE received a score of 4 out of a possible 30 points, coming in below the national average of 15.26.

MY CHOICE's capitalization ratio of 6.00 percent in our test was less than the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

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

A credit union with extensive holdings of these kinds of assets may eventually be required to use capital to cover losses, shrinking 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 risk of a failure in the future.

On Bankrate's test of asset quality, MY CHOICE scored 36 out of a possible 40 points, coming in below the national average of 38.15 points.

A higher-than-average ratio of troubled assets of 14.00 percent in our test was something to watch for the credit union.

Earnings score

A credit union's profitability affects its safety and soundness. Earnings can be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, potentially making the credit union better prepared to withstand financial shocks. Conversely, losses lessen a credit union's ability to do those things.

MY CHOICE scored 0 out of a possible 30 on Bankrate's earnings test, lower than the national average of 10.31.

One sign that MY CHOICE is underperforming its peers in this area was its earnings ratio of -1.00 percent in our test, worse than 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.