Safe and Sound

ON THE GRID FINANCIAL

ATLANTA, GA
4
Star Rating
ON THE GRID FINANCIAL is an NCUA-insured credit union founded in 1935 and currently based in ATLANTA, GA. The credit union holds assets of $38.8 million, according to December 31, 2017, regulatory filings.

Members have $20.2 million on deposit tended by 10 full-time employees. With that footprint, the credit union currently holds loans and leases worth $20.2 million. Its 5,360 members currently have $32.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ON THE GRID FINANCIAL 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 evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of a credit union's financial resilience. It works as a bulwark against losses and as protection for members when a credit union is experiencing financial instability. From a safety and soundness perspective, the higher the capital, the better.

ON THE GRID FINANCIAL racked up 18 out of a possible 30 points on our test to measure capital adequacy, above the national average of 15.65.

ON THE GRID FINANCIAL had a capitalization ratio of 18.00 percent in our test, above the average for all credit unions, suggesting that it's stronger than its peers.

Asset Quality Score

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

A credit union with large numbers of these types of assets may eventually be forced to use capital to absorb losses, cutting down on its equity buffer. 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 lower earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, ON THE GRID FINANCIAL scored 40 out of a possible 40 points, beating the national average of 38.09 points.

ON THE GRID FINANCIAL's ratio of troubled assets was 0.00 percent in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money affects its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or use them to address problematic loans, potentially making the credit union better prepared to withstand economic trouble. Conversely, losses diminish a credit union's ability to do those things.

On Bankrate's test of earnings, ON THE GRID FINANCIAL scored 2 out of a possible 30, falling short of the national average of 10.11.

ON THE GRID FINANCIAL had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's beating 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.