Safe and Sound

GEORGIA UNITED

DULUTH, GA
4
Star Rating
Founded in 1958, GEORGIA UNITED is an NCUA-insured credit union headquartered in DULUTH, GA. The credit union holds assets of $1.30 billion, according to December 31, 2017, regulatory filings.

Thanks to the work of 333 full-time employees, the credit union has amassed loans and leases worth $881.3 million. Its 158,056 members currently have $1.10 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, GEORGIA UNITED exhibited a good condition, earning 4 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 U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and provides protection for members during times of financial instability for the credit union. Therefore, a credit union's level of capital is a key measurement of its financial fortitude. When it comes to safety and soundness, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, GEORGIA UNITED received a score of 14 out of a possible 30 points, lower than the national average of 15.65.

GEORGIA UNITED's capitalization ratio of 14.00 percent in our test was less than the average for all credit unions, suggesting that it could be less resilient in a crisis 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 past-due mortgages.

A credit union with large numbers of these kinds of assets may eventually be forced to use capital to absorb losses, decreasing its buffer 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 asset quality test, GEORGIA UNITED scored 40 out of a possible 40 points, above the national average of 38.09 points.

Troubled assets made up 0.00 percent of GEORGIA UNITED's total assets in our test, less than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance 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, potentially making the credit union better able to withstand economic shocks. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's test of earnings, GEORGIA UNITED scored 14 out of a possible 30, exceeding the national average of 10.11.

One indication that the credit union is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, better than 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.