Safe and Sound

B.O.N.D. COMMUNITY

Atlanta, GA
3
Star Rating
B.O.N.D. COMMUNITY is an NCUA-insured credit union founded in 1972 and currently headquartered in Atlanta, GA. The credit union has $43.9 million in assets, according to December 31, 2017, regulatory filings.

With 11 full-time employees, the credit union has amassed loans and leases worth $18.3 million. Its 3,604 members currently have $40.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, B.O.N.D. COMMUNITY exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three key criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members when a credit union is experiencing economic trouble. It follows then that when it comes to measuring an a credit union's financial stability, capital is crucial. From a safety and soundness perspective, the more capital, the better.

On our test to measure capital adequacy, B.O.N.D. COMMUNITY received a score of 8 out of a possible 30 points, below the national average of 15.65.

B.O.N.D. COMMUNITY had a capitalization ratio of 8.00 percent in our test, lower than the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of troubled assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with extensive holdings of these types of assets may eventually have to use capital to absorb 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 interest for the credit union, resulting in diminished earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, B.O.N.D. COMMUNITY scored 36 out of a possible 40 points, lower than the national average of 38.09 points.

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

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand economic shocks. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, B.O.N.D. COMMUNITY scored 4 out of a possible 30, lower than the national average of 10.11.

One sign that B.O.N.D. COMMUNITY is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.