Safe and Sound

STEPHENS COUNTY COMMUNITY

TOCCOA, GA
3
Star Rating
STEPHENS COUNTY COMMUNITY is a TOCCOA, GA-based, NCUA-insured credit union dating back to 1972. Regulatory filings show the credit union having $166,978 in assets, as of December 31, 2017.

The credit union currently holds loans and leases worth $11,377. STEPHENS COUNTY COMMUNITY's 115 members currently have $151,085 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, STEPHENS COUNTY COMMUNITY exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three key criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial resilience, capital is important. It acts as a buffer against losses and provides protection for members when a credit union is struggling financially. From a safety and soundness perspective, the higher the capital, the better.

STEPHENS COUNTY COMMUNITY received a score of 10 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.

STEPHENS COUNTY COMMUNITY's capitalization ratio of 10.00 percent in our test was less than the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of problem assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

Having a large number of these types of assets means a credit union may have to use capital to cover losses, diminishing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in depressed earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, STEPHENS COUNTY COMMUNITY scored 32 out of a possible 40 points, lower than the national average of 38.09 points.

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, likely making the credit union better prepared to withstand financial trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's earnings test, STEPHENS COUNTY COMMUNITY scored 6 out of a possible 30, coming in below the national average of 10.11.

One sign that the credit union is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, better than 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.