Safe and Sound

AFLAC

COLUMBUS, GA
5
Star Rating
AFLAC is an NCUA-insured credit union started in 1964 and currently headquartered in COLUMBUS, GA. As of December 31, 2017, the credit union held assets of $194.0 million.

With 8 full-time employees, the credit union holds loans and leases worth $27.7 million. AFLAC's 17,336 members currently have $160.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, AFLAC exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three key criteria Bankrate used to score U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and affords protection for members when a credit union is experiencing financial instability. It follows then that an institution's level of capital is an important measurement of its financial resilience. When it comes to safety and soundness, the more capital, the better.

On our test to measure capital adequacy, AFLAC scored 24 out of a possible 30 points, better than the national average of 15.65.

AFLAC's capitalization ratio of 24.00 percent in our test was higher than the average for all credit unions, a sign that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid loans.

A credit union with lots of these types of assets may eventually be required to use capital to absorb losses, reducing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a failure in the future.

AFLAC scored 40 out of a possible 40 points on Bankrate's asset quality test, beating the national average of 38.09.

A below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, likely making the credit union more resilient in tough times. Obviously, credit unions that are losing money have less ability to do those things.

AFLAC beat the national average on Bankrate's test of earnings, achieving a score of 12 out of a possible 30.

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