Safe and Sound

HEALTH CENTER

Augusta, GA
2
Star Rating
HEALTH CENTER is an NCUA-insured credit union started in 1991 and currently headquartered in Augusta, GA. As of December 31, 2017, the credit union had assets of $50.6 million.

Thanks to the efforts of 24 full-time employees, the credit union has amassed loans and leases worth $32.9 million. Its 6,999 members currently have $44.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HEALTH CENTER exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three key criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides protection for members when a credit union is experiencing financial instability. It follows then that when it comes to measuring an an institution's financial fortitude, capital is key. When looking at safety and soundness, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, HEALTH CENTER received a score of 10 out of a possible 30 points, less than the national average of 15.65.

HEALTH CENTER had a capitalization ratio of 10.00 percent in our test, worse than the average for all credit unions, an indication that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

A credit union with a large number of these types of assets may 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 interest for the credit union, reducing earnings and elevating the chances of a failure in the future.

HEALTH CENTER scored 32 out of a possible 40 points on Bankrate's test of asset quality, less than the national average of 38.09.

The credit union's ratio of troubled assets was 0.00 percent in our test, below the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its long-term survivability. Earnings may be retained by the credit union, boosting its capital cushion, or be used to deal with problematic loans, likely making the credit union better able to withstand financial trouble. Losses, on the other hand, diminish a credit union's ability to do those things.

HEALTH CENTER received below-average marks on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

One sign that HEALTH CENTER is beating 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.