Safe and Sound

MEMORIAL HEALTH CREDIT UNION

SAVANNAH, GA
5
Star Rating
MEMORIAL HEALTH CREDIT UNION is an NCUA-insured credit union founded in 1972 and currently headquartered in SAVANNAH, GA. As of December 31, 2017, the credit union had assets of $18.6 million.

Members have $10.2 million on deposit tended by 9 full-time employees. With that footprint, the credit union has amassed loans and leases worth $10.2 million. MEMORIAL HEALTH CREDIT UNION's 3,972 members currently have $15.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MEMORIAL HEALTH CREDIT UNION exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three key criteria Bankrate used to score American credit unions on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an a credit union's financial resilience, capital is key. From a safety and soundness perspective, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, MEMORIAL HEALTH CREDIT UNION scored 28 out of a possible 30 points, exceeding the national average of 15.65.

MEMORIAL HEALTH CREDIT UNION had a capitalization ratio of 28.00 percent in our test, above the average for all credit unions, a sign that it's stronger than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having extensive holdings of these types of assets suggests a credit union may eventually have to use capital to cover losses, cutting down on its equity cushion. 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 reduced earnings and potentially more risk of a future failure.

MEMORIAL HEALTH CREDIT UNION scored above the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, diminish a credit union's ability to do those things.

MEMORIAL HEALTH CREDIT UNION underperformed the average on Bankrate's test of earnings, achieving a score of 2 out of a possible 30.

One indication that MEMORIAL HEALTH 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.