Safe and Sound

SOUTHEAST FINANCIAL

FRANKLIN, TN
2
Star Rating
SOUTHEAST FINANCIAL is an NCUA-insured credit union founded in 1936 and currently headquartered in FRANKLIN, TN. Regulatory filings show the credit union having $381.7 million in assets, as of June 30, 2017.

Members have $293.9 million on deposit tended by 136 full-time employees. With that footprint, the credit union has amassed loans and leases worth $293.9 million. SOUTHEAST FINANCIAL's 42,294 members currently have $349.1 million in shares with the credit union.

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

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and affords protection for members during times of financial trouble for the credit union. It follows then that when it comes to measuring an a credit union's financial stability, capital is crucial. When it comes to safety and soundness, more capital is preferred.

SOUTHEAST FINANCIAL received a score of 6 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, lower than the national average of 15.26.

SOUTHEAST FINANCIAL's capitalization ratio of 7.00 percent in our test was less than the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of problem assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with lots of these kinds of assets could eventually be forced to use capital to absorb losses, decreasing 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, resulting in lower earnings and potentially more risk of a future failure.

SOUTHEAST FINANCIAL scored 28 out of a possible 40 points on Bankrate's test of asset quality, less than the national average of 38.15.

An above-average ratio of problem assets of 25.00 percent in our test was a potential cause for concern for SOUTHEAST FINANCIAL.

Earnings score

How successful a credit union is at making money affects its long-term survivability. Earnings may be retained by the credit union, expanding its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. However, credit unions that are losing money are less able to do those things.

SOUTHEAST FINANCIAL received below-average marks on Bankrate's earnings test, achieving a score of 2 out of a possible 30.

SOUTHEAST FINANCIAL had an earnings ratio of 1.00 percent in our test, equal to the average for all credit unions, a sign that it's running neck and neck with 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.