Safe and Sound

PIEDMONT ADVANTAGE CREDIT UNION

WINSTON SALEM, NC
3
Star Rating
WINSTON SALEM, NC-based PIEDMONT ADVANTAGE CREDIT UNION is an NCUA-insured credit union started in 1949. The credit union has $341.3 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 99 full-time employees, the credit union currently holds loans and leases worth $268.8 million. PIEDMONT ADVANTAGE CREDIT UNION's 42,582 members currently have $285.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PIEDMONT ADVANTAGE CREDIT UNION exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three key criteria Bankrate used to score U.S. 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 economic trouble. When it comes to safety and soundness, more capital is better.

PIEDMONT ADVANTAGE CREDIT UNION finished below the national average of 15.65 on our test to measure capital adequacy, receiving a score of 12 out of a possible 30 points.

PIEDMONT ADVANTAGE CREDIT UNION appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 12.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

This test's purpose is to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as past-due loans.

A credit union with lots of these types of assets could eventually be required 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 no longer earning interest for the credit union, diminishing earnings and increasing the risk of a failure in the future.

PIEDMONT ADVANTAGE CREDIT UNION scored 32 out of a possible 40 points on Bankrate's test of asset quality, below the national average of 38.09.

The credit union's ratio of troubled assets was 0.00 percent in our test, less 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 earning money has an effect on its long-term survivability. Earnings can be retained by the credit union, boosting its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. However, credit unions that are losing money have less ability to do those things.

PIEDMONT ADVANTAGE CREDIT UNION scored 8 out of a possible 30 on Bankrate's test of earnings, failing to reach the national average of 10.11.

One indication that the credit union 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.