Safe and Sound

COMMUNITY UNITED

WAYCROSS, GA
1
Star Rating
COMMUNITY UNITED is an NCUA-insured credit union started in 1966 and currently based in WAYCROSS, GA. Regulatory filings show the credit union having $23.5 million in assets, as of June 30, 2017.

Members have $16.5 million on deposit tended by 8 full-time employees. With that footprint, the credit union holds loans and leases worth $16.5 million. COMMUNITY UNITED's 3,352 members currently have $18.6 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, COMMUNITY UNITED exhibited a significantly below-average condition, earning 1 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major criteria Bankrate used to evaluate U.S. credit unions.

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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, a credit union's level of capital is an important measurement of its financial resilience. When looking at safety and soundness, the higher the capital, the better.

COMMUNITY UNITED came in below the national average of 15.26 on our test to measure the adequacy of a credit union's capital, scoring 0 out of a possible 30 points.

COMMUNITY UNITED appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 4.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

This test's purpose is to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid mortgages.

A credit union with lots of these kinds of assets could eventually be required to use capital to absorb losses, diminishing 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 interest for the credit union, pushing down earnings and increasing the risk of a failure in the future.

On Bankrate's asset quality test, COMMUNITY UNITED scored 24 out of a possible 40 points, failing to reach the national average of 38.15 points.

A greater-than-average ratio of problem assets of 30.00 percent in our test was a potential area of concern for the credit union.

Earnings score

A credit union's ability to earn money has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better able to withstand economic trouble. Conversely, losses diminish a credit union's ability to do those things.

On Bankrate's earnings test, COMMUNITY UNITED scored 0 out of a possible 30, lower than the national average of 10.31.

COMMUNITY UNITED had an earnings ratio of -368.00 percent in our test, worse than the average for all credit unions, a sign that it's underperforming 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.