Safe and Sound

GREATER EASTERN

Johnson City, TN
4
Star Rating
GREATER EASTERN is an NCUA-insured credit union founded in 1952 and currently headquartered in Johnson City, TN. As of December 31, 2017, the credit union held assets of $54.6 million.

Thanks to the efforts of 19 full-time employees, the credit union currently holds loans and leases worth $30.6 million. Its 4,390 members currently have $46.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, GREATER EASTERN exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three major criteria Bankrate used to score American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and as protection for members during periods of economic trouble for the credit union. Therefore, an institution's level of capital is an important measurement of its financial strength. From a safety and soundness perspective, the higher the capital, the better.

GREATER EASTERN racked up 20 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.

GREATER EASTERN's capitalization ratio of 20.00 percent in our test was above the average for all credit unions, an indication that it's stronger than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the impact of troubled assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with large numbers of these kinds of assets could eventually be forced to use capital to absorb losses, shrinking its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, decreasing earnings and elevating the chances of a failure in the future.

On Bankrate's asset quality test, GREATER EASTERN scored 40 out of a possible 40 points, beating 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 superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, likely making the credit union more resilient in times of trouble. Credit unions that are losing money, however, have less ability to do those things.

GREATER EASTERN fell short of the national average on Bankrate's earnings test, achieving a score of 2 out of a possible 30.

One sign that GREATER EASTERN is running ahead of 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.