WHAT IS
SAFE AND SOUND?
Capital works as a buffer against losses and as protection for members when a credit union is struggling financially. Therefore, a credit union's level of capital is a valuable measurement of its financial fortitude. From a safety and soundness perspective, the higher the capital, the better.
FAITH TABERNACLE BAPTIST received a score of 12 out of a possible 30 points on our test to measure capital adequacy, below the national average of 15.65.
FAITH TABERNACLE BAPTIST had a capitalization ratio of 12.00 percent in our test, lower than the average for all credit unions, suggesting that it's on less solid financial footing than its peers.
Bankrate uses this test to determine the effect of problem assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.
A credit union with a large number of these types of assets may eventually have to use capital to absorb losses, diminishing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in depressed earnings and potentially more risk of a failure in the future.
On Bankrate's test of asset quality, FAITH TABERNACLE BAPTIST scored 0 out of a possible 40 points, less than the national average of 38.09 points.
FAITH TABERNACLE BAPTIST's ratio of troubled assets was 1.00 percent in our test, the same as the national average.
A credit union's ability to earn money has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, likely making the credit union better prepared to withstand financial shocks. Credit unions that are losing money, however, are less able to do those things.
FAITH TABERNACLE BAPTIST fell short of the national average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.
FAITH TABERNACLE BAPTIST had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign that it's beating its peers in this area.
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.
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.