Safe and Sound

SIXTH AVENUE BAPTIST

BIRMINGHAM, AL
1
Star Rating
BIRMINGHAM, AL-based SIXTH AVENUE BAPTIST is an NCUA-insured credit union started in 1963. As of December 31, 2017, the credit union had assets of $4.4 million.

Thanks to the work of 2 full-time employees, the credit union holds loans and leases worth $2.4 million. SIXTH AVENUE BAPTIST's 887 members currently have $4.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SIXTH AVENUE BAPTIST exhibited a significantly below-average condition, earning 1 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three important criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of an institution's financial strength. It works as a cushion against losses and affords protection for members during times of economic instability for the credit union. When it comes to safety and soundness, the more capital, the better.

SIXTH AVENUE BAPTIST received a score of 6 out of a possible 30 points on our test to measure capital adequacy, falling short of the national average of 15.65.

SIXTH AVENUE BAPTIST's capitalization ratio of 6.00 percent in our test was worse than the average for all credit unions, an indication that it could be less resilient in a crisis 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 reserves set aside to cover loan losses, as well as overall capitalization.

Having extensive holdings of these types of assets suggests a credit union could have to use capital to cover losses, reducing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, reducing earnings and increasing the risk of a failure in the future.

SIXTH AVENUE BAPTIST scored 20 out of a possible 40 points on Bankrate's asset quality test, less than the national average of 38.09.

The credit union's ratio of problem assets was 0.00 percent in our test, beneath 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 has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the credit union more resilient in times of trouble. Losses, on the other hand, reduce a credit union's ability to do those things.

On Bankrate's earnings test, SIXTH AVENUE BAPTIST scored 2 out of a possible 30, failing to reach the national average of 10.11.

One indication that the credit union is beating its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.