Safe and Sound

SOUTHEASTERN

Valdosta, GA
4
Star Rating
Founded in 1953, SOUTHEASTERN is an NCUA-insured credit union headquartered in Valdosta, GA. Regulatory filings show the credit union having assets of $240.8 million, as of December 31, 2017.

With 83 full-time employees, the credit union holds loans and leases worth $165.8 million. SOUTHEASTERN's 26,583 members currently have $214.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SOUTHEASTERN exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to evaluate 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 an institution's financial resilience. It acts as a bulwark against losses and as protection for members during periods of economic instability for the credit union. From a safety and soundness perspective, the higher the capital, the better.

SOUTHEASTERN received a score of 10 out of a possible 30 points on our test to measure capital adequacy, falling short of the national average of 15.65.

SOUTHEASTERN appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 10.00 percent in our test, below the average for all credit unions.

Asset Quality Score

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

A credit union with a large number of these kinds of assets could eventually have to use capital to absorb losses, cutting down on its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a future failure.

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

A below-average ratio of troubled assets of 0.00 percent in our test was 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, boosting its capital buffer, or use them to deal with problematic loans, potentially making the credit union better able to withstand economic trouble. Conversely, losses diminish a credit union's ability to do those things.

On Bankrate's earnings test, SOUTHEASTERN scored 12 out of a possible 30, better than the national average of 10.11.

One sign that SOUTHEASTERN is running ahead of 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.