Safe and Sound

RABUN-TALLULAH

TIGER, GA
4
Star Rating
RABUN-TALLULAH is a TIGER, GA-based, NCUA-insured credit union started in 1977. Regulatory filings show the credit union having assets of $668,689, as of December 31, 2017.

The credit union currently holds loans and leases worth $138,645. RABUN-TALLULAH's 148 members currently have $520,104 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, RABUN-TALLULAH exhibited a good condition, earning 4 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 grade American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of a credit union's financial fortitude. It acts as a cushion against losses and as protection for members when a credit union is experiencing financial trouble. When looking at safety and soundness, more capital is preferred.

On our test to measure capital adequacy, RABUN-TALLULAH achieved a score of 30 out of a possible 30 points, beating out the national average of 15.65.

RABUN-TALLULAH appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 30.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

This test is intended to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid mortgages.

Having lots of these kinds of assets suggests a credit union may have to use capital to cover losses, reducing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, pushing down earnings and increasing the chances of a future failure.

RABUN-TALLULAH fell short of the national average of 38.09 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

A below-average ratio of troubled 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 earnings performance affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, potentially making the credit union better able to withstand financial shocks. Conversely, losses take away from a credit union's ability to do those things.

On Bankrate's earnings test, RABUN-TALLULAH scored 0 out of a possible 30, coming in below the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's outperforming 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.