Safe and Sound

GEORGIA POWER VALDOSTA

Valdosta, GA
4
Star Rating
GEORGIA POWER VALDOSTA is a Valdosta, GA-based, NCUA-insured credit union started in 1958. The credit union holds assets of $23.1 million, according to December 31, 2017, regulatory filings.

With 10 full-time employees, the credit union holds loans and leases worth $12.3 million. Its 3,560 members currently have $20.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, GEORGIA POWER VALDOSTA exhibited a good condition, earning 4 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 grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of a credit union's financial resilience. It works as a buffer against losses and affords protection for members during periods of financial instability for the credit union. When looking at safety and soundness, the higher the capital, the better.

GEORGIA POWER VALDOSTA fell below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, racking up 14 out of a possible 30 points.

GEORGIA POWER VALDOSTA had a capitalization ratio of 14.00 percent in our test, less than the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

Bankrate uses this test to estimate the effect of troubled assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

A credit union with a large number of these types of assets could eventually be required to use capital to absorb losses, reducing 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 reduced earnings and potentially more risk of a future failure.

GEORGIA POWER VALDOSTA scored 40 out of a possible 40 points on Bankrate's asset quality test, exceeding the national average of 38.09.

GEORGIA POWER VALDOSTA's ratio of problem assets was 0.00 percent in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's earnings test, GEORGIA POWER VALDOSTA scored 8 out of a possible 30, below the national average of 10.11.

GEORGIA POWER VALDOSTA had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, an indication that it's running ahead of 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.