Safe and Sound

ALTAMAHA

JESUP, GA
5
Star Rating
ALTAMAHA is a JESUP, GA-based, NCUA-insured credit union started in 1955. The credit union has assets of $55.8 million, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 25 full-time employees, the credit union currently holds loans and leases worth $33.8 million. Its 8,893 members currently have $46.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ALTAMAHA 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 American credit unions on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial stability, capital is important. It acts as a cushion against losses and provides protection for members when a credit union is struggling financially. When it comes to safety and soundness, the more capital, the better.

ALTAMAHA scored 22 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, beating the national average of 15.65.

ALTAMAHA's capitalization ratio of 22.00 percent in our test was higher than the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate 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.

Having large numbers of these kinds of assets means a credit union may have to use capital to cover losses, cutting down on its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, pushing down earnings and increasing the chances of a future failure.

On Bankrate's test of asset quality, ALTAMAHA scored 40 out of a possible 40 points, above the national average of 38.09 points.

ALTAMAHA's ratio of problem assets was 0.00 percent in our test, below the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money affects its long-term survivability. Earnings may be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses diminish a credit union's ability to do those things.

On Bankrate's earnings test, ALTAMAHA scored 14 out of a possible 30, exceeding the national average of 10.11.

ALTAMAHA had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, an indication 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.