Safe and Sound

BRAGG MUTUAL

FAYETTEVILLE, NC
5
Star Rating
Founded in 1952, BRAGG MUTUAL is an NCUA-insured credit union headquartered in FAYETTEVILLE, NC. As of December 31, 2017, the credit union held assets of $55.5 million.

Members have $35.8 million on deposit tended by 26 full-time employees. With that footprint, the credit union holds loans and leases worth $35.8 million. BRAGG MUTUAL's 10,371 members currently have $47.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BRAGG MUTUAL 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 key criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial fortitude, capital is useful. It acts as a buffer against losses and affords protection for members when a credit union is experiencing economic trouble. When it comes to safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, BRAGG MUTUAL racked up 18 out of a possible 30 points, exceeding the national average of 15.65.

BRAGG MUTUAL appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 18.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

This test's purpose is to try to understand how the credit union's loan loss reserves and 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 required 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 no longer earning money, pushing down earnings and elevating the risk of a future failure.

On Bankrate's test of asset quality, BRAGG MUTUAL scored 40 out of a possible 40 points, better than the national average of 38.09 points.

BRAGG MUTUAL's ratio of troubled assets was 0.00 percent 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, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses reduce a credit union's ability to do those things.

BRAGG MUTUAL beat the national average on Bankrate's earnings test, achieving a score of 22 out of a possible 30.

BRAGG MUTUAL had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign that it's beating 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.