Safe and Sound

GEORGETOWN UNIVERSITY ALUMNI AND ST

WASHINGTON, DC
3
Star Rating
GEORGETOWN UNIVERSITY ALUMNI AND ST is a Washington, DC-based, NCUA-insured credit union dating back to 1983. As of December 31, 2017, the credit union had assets of $17.0 million.

The credit union holds loans and leases worth $3.4 million. Its 3,500 members currently have $15.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, GEORGETOWN UNIVERSITY ALUMNI AND ST exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three key criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

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

GEORGETOWN UNIVERSITY ALUMNI AND ST received a score of 6 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, below the national average of 15.65.

GEORGETOWN UNIVERSITY ALUMNI AND ST had a capitalization ratio of 6.00 percent in our test, below the average for all credit unions, a sign that it's less well prepared for financial trouble than its peers.

Asset Quality Score

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

Having a large number of these kinds of assets suggests a credit union may eventually have to use capital to cover losses, decreasing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a future failure.

GEORGETOWN UNIVERSITY ALUMNI AND ST scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating out the national average of 38.09.

GEORGETOWN UNIVERSITY ALUMNI AND ST's ratio of troubled assets was 0.00 percent in our test, less than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money affects its safety and soundness. Earnings can be retained by the credit union, increasing its capital cushion, or be used to address problematic loans, likely making the credit union better prepared to withstand economic trouble. Credit unions that are losing money, however, are less able to do those things.

GEORGETOWN UNIVERSITY ALUMNI AND ST fell behind the national average on Bankrate's test of earnings, achieving a score of 4 out of a possible 30.

One sign that the credit union is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, above the average for all credit unions.

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.