Safe and Sound

TALLAHASSEE-LEON

TALLAHASSEE, FL
5
Star Rating
TALLAHASSEE, FL-based TALLAHASSEE-LEON is an NCUA-insured credit union founded in 1936. The credit union holds assets of $55.3 million, according to December 31, 2017, regulatory filings.

Members have $29.9 million on deposit tended by 21 full-time employees. With that footprint, the credit union currently holds loans and leases worth $29.9 million. Its 5,966 members currently have $49.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TALLAHASSEE-LEON exhibited a superior condition, earning a full 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 on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and as protection for members when a credit union is experiencing economic instability. Therefore, a credit union's level of capital is a key measurement of its financial fortitude. When looking at safety and soundness, the higher the capital, the better.

TALLAHASSEE-LEON fell below the national average of 15.65 on our test to measure capital adequacy, achieving a score of 8 out of a possible 30 points.

TALLAHASSEE-LEON appears to be weaker than its peers in this area, with a capitalization ratio of 8.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

This test's purpose is to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as past-due mortgages.

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

On Bankrate's asset quality test, TALLAHASSEE-LEON scored 40 out of a possible 40 points, above 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 greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money affects its long-term survivability. A credit union can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses reduce a credit union's ability to do those things.

On Bankrate's earnings test, TALLAHASSEE-LEON scored 28 out of a possible 30, above the national average of 10.11.

One sign that TALLAHASSEE-LEON is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.