Safe and Sound

COCA-COLA

ATLANTA, GA
4
Star Rating
COCA-COLA is an NCUA-insured credit union founded in 1965 and currently headquartered in ATLANTA, GA. Regulatory filings show the credit union having assets of $199.2 million, as of June 30, 2017.

Thanks to the work of 41 full-time employees, the credit union has amassed loans and leases worth $125.5 million. COCA-COLA's 14,180 members currently have $180.6 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, COCA-COLA exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions.

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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 experiencing financial instability. It follows then that when it comes to measuring an a credit union's financial resilience, capital is essential. When it comes to safety and soundness, the more capital, the better.

COCA-COLA received a score of 8 out of a possible 30 points on our test to measure capital adequacy, below the national average of 15.26.

COCA-COLA appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 8.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

This test is intended to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as unpaid loans.

Having a large number of these types of assets means a credit union may eventually have to use capital to absorb losses, decreasing its equity buffer. 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.

COCA-COLA scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating out the national average of 38.15.

A lower-than-average ratio of problem assets of 6.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or use them to address problematic loans, likely making the credit union more resilient in tough times. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, COCA-COLA scored 16 out of a possible 30, above the national average of 10.31.

One sign that the credit union is running ahead of its peers in this area was its earnings ratio of 7.00 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.