Safe and Sound

COMMUNITY SOUTH

CHIPLEY, FL
4
Star Rating
CHIPLEY, FL-based COMMUNITY SOUTH is an NCUA-insured credit union founded in 1991. As of December 31, 2017, the credit union had assets of $114.4 million.

Thanks to the efforts of 40 full-time employees, the credit union currently holds loans and leases worth $90.7 million. COMMUNITY SOUTH's 10,436 members currently have $95.6 million in shares with the credit union.

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

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial stability, capital is valuable. It acts as a buffer against losses and affords protection for members when a credit union is struggling financially. When it comes to safety and soundness, more capital is preferred.

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

COMMUNITY SOUTH had a capitalization ratio of 18.00 percent in our test, above the average for all credit unions, an indication that it's stronger than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid mortgages.

A credit union with large numbers of these kinds of assets could eventually be required to use capital to absorb losses, cutting down on 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, diminishing earnings and elevating the risk of a future failure.

COMMUNITY SOUTH came in below the national average of 38.09 on Bankrate's asset quality test, racking up 32 out of a possible 40 points .

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

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, likely making the credit union better able to withstand economic shocks. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, COMMUNITY SOUTH scored 10 out of a possible 30, lower than the national average of 10.11.

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