Safe and Sound

TRIPLE C 16

BALTIMORE, MD
4
Star Rating
BALTIMORE, MD-based TRIPLE C 16 is an NCUA-insured credit union started in 1954. As of June 30, 2017, the credit union held assets of $3.3 million.

TRIPLE C 16's 447 members currently have $2.5 million in shares with the credit union. With that footprint, the credit union holds loans and leases worth $1.2 million.

Overall, Bankrate believes that, as of June 30, 2017, TRIPLE C 16 exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three key criteria Bankrate used to grade U.S. credit unions.

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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 cushion against losses and provides protection for members when a credit union is struggling financially. When looking at safety and soundness, more capital is preferred.

On our test to measure capital adequacy, TRIPLE C 16 achieved a score of 30 out of a possible 30 points, beating out the national average of 15.26.

TRIPLE C 16 appears to be on more solid financial footing than its peers, with a capitalization ratio of 23.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

This test's purpose is to try to understand 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 a large number of these types of assets may eventually be forced to use capital to cover losses, diminishing 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 interest for the credit union, reducing earnings and increasing the chances of a failure in the future.

TRIPLE C 16 finished below the national average of 38.15 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

Troubled assets made up 8.00 percent of the credit union's total assets in our test, above the national average and a potential cause for concern.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. A credit union can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better able to withstand economic trouble. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, TRIPLE C 16 scored 0 out of a possible 30, below the national average of 10.31.

One indication that TRIPLE C 16 is running behind its peers in this area was its earnings ratio of -8.00 percent in our test, below 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.