Safe and Sound

A.U.B. EMPLOYEES'

Athens, TN
5
Star Rating
Founded in 1965, A.U.B. EMPLOYEES' is an NCUA-insured credit union headquartered in Athens, TN. Regulatory filings show the credit union having assets of $1.8 million, as of December 31, 2017.

The credit union holds loans and leases worth $1.1 million. A.U.B. EMPLOYEES''s 258 members currently have $1.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, A.U.B. EMPLOYEES' exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three important criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and provides 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 fortitude, capital is key. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, A.U.B. EMPLOYEES' scored 30 out of a possible 30 points, beating the national average of 15.65.

A.U.B. EMPLOYEES' appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 30.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

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

Having a large number of these kinds of assets could eventually require a credit union 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 thus aren't earning interest for the credit union, decreasing earnings and elevating the risk of a failure in the future.

A.U.B. EMPLOYEES' scored above the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

Troubled assets made up 0.00 percent of A.U.B. EMPLOYEES''s total assets in our test, below the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability affects its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, likely making the credit union better prepared to withstand economic trouble. Obviously, credit unions that are losing money are less able to do those things.

A.U.B. EMPLOYEES' scored 2 out of a possible 30 on Bankrate's test of earnings, coming in below the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign that it's running ahead of 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.