Safe and Sound

ST. THOMAS

NASHVILLE, TN
3
Star Rating
ST. THOMAS is a NASHVILLE, TN-based, NCUA-insured credit union dating back to 1959. As of December 31, 2017, the credit union had assets of $26.2 million.

Members have $19.8 million on deposit tended by 11 full-time employees. With that footprint, the credit union holds loans and leases worth $19.8 million. Its 3,020 members currently have $23.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ST. THOMAS exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three key criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and provides protection for members when a credit union is struggling financially. It follows then that an institution's level of capital is a crucial measurement of its financial fortitude. From a safety and soundness perspective, the more capital, the better.

On our test to measure capital adequacy, ST. THOMAS received a score of 12 out of a possible 30 points, less than the national average of 15.65.

ST. THOMAS 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, below the average for all credit unions.

Asset Quality Score

Bankrate uses this test to estimate the effect of troubled assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

A credit union with large numbers of these types of assets could eventually have to use capital to absorb losses, diminishing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, decreasing earnings and elevating the risk of a future failure.

ST. THOMAS finished below the national average of 38.09 on Bankrate's asset quality test, racking up 28 out of a possible 40 points .

Troubled assets made up 0.00 percent of ST. THOMAS's total assets in our test, below the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. Earnings may be retained by the credit union, boosting its capital cushion, or be used to address problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

ST. THOMAS scored 10 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.11.

One indication that ST. THOMAS 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.