Safe and Sound

PLATINUM

DULUTH, GA
5
Star Rating
PLATINUM is a DULUTH, GA-based, NCUA-insured credit union founded in 1999. As of December 31, 2017, the credit union had assets of $94.3 million.

Members have $71.0 million on deposit tended by 37 full-time employees. With that footprint, the credit union has amassed loans and leases worth $71.0 million. PLATINUM's 8,644 members currently have $85.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, PLATINUM exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union did on the three important criteria Bankrate used to grade American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members when a credit union is struggling financially. It follows then that a credit union's level of capital is an essential measurement of its financial fortitude. When it comes to safety and soundness, the higher the capital, the better.

PLATINUM received a score of 8 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, falling short of the national average of 15.65.

PLATINUM had a capitalization ratio of 8.00 percent in our test, below the average for all credit unions, an indication that it's weaker than its peers.

Asset Quality Score

This test is intended 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.

Having large numbers of these kinds of assets means a credit union may eventually have to use capital to absorb losses, shrinking 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, resulting in reduced earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, PLATINUM scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

PLATINUM's ratio of troubled assets was 0.00 percent in our test, less than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money 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 better prepared to withstand economic trouble. Conversely, losses lessen a credit union's ability to do those things.

PLATINUM received above-average marks on Bankrate's test of earnings, achieving a score of 24 out of a possible 30.

PLATINUM had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's doing better than 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.