Safe and Sound

GENERATIONS COMMUNITY

San Antonio, TX
2
Star Rating
San Antonio, TX-based GENERATIONS COMMUNITY is an NCUA-insured credit union founded in 1940. The credit union holds assets of $563.9 million, according to June 30, 2017, regulatory filings.

Thanks to the efforts of 230 full-time employees, the credit union has amassed loans and leases worth $405.9 million. GENERATIONS COMMUNITY's 52,592 members currently have $466.0 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, GENERATIONS COMMUNITY exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three major criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of an institution's financial strength. It works as a buffer against losses and provides protection for members when a credit union is struggling financially. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, GENERATIONS COMMUNITY received a score of 6 out of a possible 30 points, failing to reach the national average of 15.26.

GENERATIONS COMMUNITY had a capitalization ratio of 8.00 percent in our test, below the average for all credit unions, an indication that it's less well prepared for financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the impact of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with extensive holdings of these kinds of assets could eventually be forced to use capital to absorb losses, diminishing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, decreasing earnings and elevating the risk of a failure in the future.

On Bankrate's asset quality test, GENERATIONS COMMUNITY scored 36 out of a possible 40 points, failing to reach the national average of 38.15 points.

A higher-than-average ratio of troubled assets of 10.00 percent in our test was something to keep an eye on for the credit union.

Earnings score

How successful a credit union is at making money affects its safety and soundness. A credit union can retain its earnings, boosting its capital cushion, or use them to address problematic loans, likely making the credit union better prepared to withstand economic shocks. Losses, on the other hand, reduce a credit union's ability to do those things.

On Bankrate's earnings test, GENERATIONS COMMUNITY scored 0 out of a possible 30, lower than the national average of 10.31.

GENERATIONS COMMUNITY had an earnings ratio of -7.00 percent in our test, below the average for all credit unions, an indication that it's lagging behind its peers in this area.

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.