Safe and Sound

ATLANTA

ATLANTA, GA
4
Star Rating
Founded in 1958, ATLANTA is an NCUA-insured credit union based in ATLANTA, GA. The credit union has assets of $9.7 million, according to December 31, 2017, regulatory filings.

With 5 full-time employees, the credit union currently holds loans and leases worth $4.4 million. Its 2,318 members currently have $8.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ATLANTA exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three important criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial strength, capital is crucial. When looking at safety and soundness, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, ATLANTA racked up 26 out of a possible 30 points, exceeding the national average of 15.65.

ATLANTA appears to be on more solid financial footing than its peers, with a capitalization ratio of 26.00 percent in our test, better than the average for all credit unions.

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 past-due loans.

Having extensive holdings of these types of assets may eventually require a credit union to use capital to absorb losses, decreasing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, reducing earnings and increasing the risk of a future failure.

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

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

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings can be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, likely making the credit union better prepared to withstand financial shocks. However, credit unions that are losing money have less ability to do those things.

ATLANTA received below-average marks on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

One sign that ATLANTA is outperforming its peers in this area was its earnings ratio of 0.00 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.