Safe and Sound

DELTA COMMUNITY

ATLANTA, GA
4
Star Rating
DELTA COMMUNITY is an ATLANTA, GA-based, NCUA-insured credit union that opened its doors in 1940. Regulatory filings show the credit union having $5.51 billion in assets, as of June 30, 2017.

Members have $4.40 billion on deposit tended by 946 full-time employees. With that footprint, the credit union has amassed loans and leases worth $4.40 billion. DELTA COMMUNITY's 360,703 members currently have $4.83 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, DELTA COMMUNITY 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 important criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of a credit union's financial fortitude. It works as a cushion against losses and provides protection for members during times of financial trouble for the credit union. When it comes to safety and soundness, the higher the capital, the better.

DELTA COMMUNITY received a score of 14 out of a possible 30 points on our test to measure capital adequacy, falling short of the national average of 15.26.

DELTA COMMUNITY had a capitalization ratio of 12.00 percent in our test, worse than the average for all credit unions, a sign that it's weaker than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of troubled assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having lots of these kinds of assets suggests a credit union may have to use capital to cover losses, cutting down on its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in reduced earnings and potentially more risk of a failure in the future.

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

Troubled assets made up 3.00 percent of DELTA COMMUNITY's total assets 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 earnings performance has an effect on its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand economic shocks. Conversely, losses reduce a credit union's ability to do those things.

DELTA COMMUNITY scored 14 out of a possible 30 on Bankrate's test of earnings, beating out the national average of 10.31.

One sign that DELTA COMMUNITY is beating 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.