Safe and Sound

MERCY

SAVANNAH, GA
5
Star Rating
MERCY is a SAVANNAH, GA-based, NCUA-insured credit union that opened its doors in 1976. As of June 30, 2017, the credit union held assets of $7.7 million.

Thanks to the work of 5 full-time employees, the credit union currently holds loans and leases worth $3.6 million. Its 1,887 members currently have $6.3 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, MERCY exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members when a credit union is struggling financially. It follows then that an institution's level of capital is a valuable measurement of its financial fortitude. From a safety and soundness perspective, more capital is preferred.

MERCY did better than the national average of 15.26 points on our test to measure capital adequacy, achieving a score of 22 out of a possible 30 points.

MERCY's capitalization ratio of 16.00 percent in our test was higher than the average for all credit unions, an indication that it's more well prepared for financial trouble than its peers.

Asset Quality Score

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

Having lots of these kinds of assets means a credit union could have to use capital to cover losses, diminishing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, reducing earnings and increasing the risk of a future failure.

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

The credit union's ratio of troubled assets was 4.00 percent in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects its safety and soundness. Earnings may be retained by the credit union, giving a boost to its capital cushion, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses reduce a credit union's ability to do those things.

On Bankrate's test of earnings, MERCY scored 16 out of a possible 30, exceeding the national average of 10.31.

One sign that the credit union is doing better than its peers in this area was its earnings ratio of 8.00 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.