Safe and Sound

AUGUSTA HEALTH CARE CREDIT UNION

FISHERSVILLE, VA
5
Star Rating
AUGUSTA HEALTH CARE CREDIT UNION is an NCUA-insured credit union started in 1964 and currently headquartered in FISHERSVILLE, VA. As of December 31, 2017, the credit union had assets of $11.8 million.

Thanks to the efforts of 2 full-time employees, the credit union holds loans and leases worth $5.6 million. AUGUSTA HEALTH CARE CREDIT UNION's 1,699 members currently have $10.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, AUGUSTA HEALTH CARE CREDIT UNION exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union faired on the three major criteria Bankrate used to evaluate American credit unions on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is crucial. It works as a cushion against losses and provides protection for members during periods of economic instability for the credit union. When looking at safety and soundness, the higher the capital, the better.

AUGUSTA HEALTH CARE CREDIT UNION beat out the national average of 15.65 points on our test to measure capital adequacy, racking up 16 out of a possible 30 points.

AUGUSTA HEALTH CARE CREDIT UNION's capitalization ratio of 16.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

This test's purpose is to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as past-due loans.

A credit union with a large number of these types of assets could eventually have to use capital to absorb losses, cutting down on its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, pushing down earnings and elevating the risk of a future failure.

AUGUSTA HEALTH CARE CREDIT UNION scored 40 out of a possible 40 points on Bankrate's asset quality test, exceeding the national average of 38.09.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, below the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

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

On Bankrate's earnings test, AUGUSTA HEALTH CARE CREDIT UNION scored 18 out of a possible 30, better than the national average of 10.11.

One indication that the credit union is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, better than 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.