Safe and Sound

OKLAHOMA

Oklahoma City, OK
5
Star Rating
OKLAHOMA is an NCUA-insured credit union started in 1951 and currently headquartered in OKLAHOMA CITY, OK. Regulatory filings show the credit union having $124.9 million in assets, as of December 31, 2017.

Thanks to the efforts of 21 full-time employees, the credit union has amassed loans and leases worth $86.7 million. OKLAHOMA's 11,129 members currently have $106.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, OKLAHOMA 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 major criteria Bankrate used to grade 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 as protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an a credit union's financial strength, capital is crucial. When looking at safety and soundness, the higher the capital, the better.

OKLAHOMA achieved a score of 18 out of a possible 30 points on our test to measure capital adequacy, better than the national average of 15.65.

OKLAHOMA had a capitalization ratio of 18.00 percent in our test, better than the average for all credit unions, an indication that it could be more resilient in a crisis than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid mortgages.

A credit union with lots of these types of assets could eventually be required to use capital to absorb losses, shrinking its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, diminishing earnings and increasing the risk of a failure in the future.

On Bankrate's asset quality test, OKLAHOMA scored 40 out of a possible 40 points, above the national average of 38.09 points.

Troubled assets made up 0.00 percent of OKLAHOMA's total assets in our test, below 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 affects its safety and soundness. Earnings can be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, likely making the credit union better prepared to withstand financial trouble. Conversely, losses diminish a credit union's ability to do those things.

OKLAHOMA beat the national average on Bankrate's earnings test, achieving a score of 16 out of a possible 30.

One sign that the credit union is beating its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.