Safe and Sound

BALDWIN COUNTY

BAY MINETTE, AL
4
Star Rating
Founded in 1959, BALDWIN COUNTY is an NCUA-insured credit union headquartered in BAY MINETTE, AL. The credit union holds assets of $21.6 million, according to December 31, 2017, regulatory filings.

With 7 full-time employees, the credit union currently holds loans and leases worth $10.4 million. BALDWIN COUNTY's 2,620 members currently have $18.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BALDWIN COUNTY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three major criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts 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 stability, capital is valuable. When looking at safety and soundness, the more capital, the better.

On our test to measure capital adequacy, BALDWIN COUNTY racked up 18 out of a possible 30 points, exceeding the national average of 15.65.

BALDWIN COUNTY's capitalization ratio of 18.00 percent in our test was above the average for all credit unions, an indication that it's more well prepared for financial trouble than its peers.

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 troubled assets, such as past-due mortgages.

A credit union with extensive holdings of these kinds of assets could eventually be forced to use capital to absorb losses, reducing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, decreasing earnings and elevating the chances of a failure in the future.

BALDWIN COUNTY scored 36 out of a possible 40 points on Bankrate's asset quality test, below the national average of 38.09.

A lower-than-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 has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, potentially making the credit union more resilient in times of trouble. However, credit unions that are losing money have less ability to do those things.

BALDWIN COUNTY underperformed the average on Bankrate's earnings test, achieving a score of 6 out of a possible 30.

BALDWIN COUNTY had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication that it's doing better than 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.