Safe and Sound

GENUINE PARTS

NORCROSS, GA
5
Star Rating
GENUINE PARTS is an NCUA-insured credit union started in 1937 and currently based in NORCROSS, GA. The credit union has assets of $9.2 million, according to December 31, 2017, regulatory filings.

Members have $3.3 million on deposit tended by 2 full-time employees. With that footprint, the credit union has amassed loans and leases worth $3.3 million. Its 1,076 members currently have $6.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, GENUINE PARTS exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three key criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and affords protection for members when a credit union is experiencing financial instability. Therefore, a credit union's level of capital is an essential measurement of its financial resilience. When it comes to safety and soundness, more capital is preferred.

GENUINE PARTS scored 30 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, beating the national average of 15.65.

GENUINE PARTS had a capitalization ratio of 30.00 percent in our test, better than the average for all credit unions, a sign that it's stronger than its peers.

Asset Quality Score

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

A credit union with extensive holdings of these types of assets could eventually have 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 thus aren't earning money, resulting in depressed earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, GENUINE PARTS scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

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

How successful a credit union is at making money affects its long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. Obviously, credit unions that are losing money have less ability to do those things.

GENUINE PARTS received below-average marks on Bankrate's test of earnings, achieving a score of 2 out of a possible 30.

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.