Safe and Sound

AFFINITY PLUS

Saint Paul, MN
4
Star Rating
AFFINITY PLUS is a Saint Paul, MN-based, NCUA-insured credit union started in 1934. Regulatory filings show the credit union having assets of $2.01 billion, as of June 30, 2017.

Thanks to the efforts of 518 full-time employees, the credit union has amassed loans and leases worth $1.84 billion. AFFINITY PLUS's 186,311 members currently have $1.81 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, AFFINITY PLUS 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 important criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members when a credit union is struggling financially. It follows then that an institution's level of capital is a valuable measurement of its financial strength. From a safety and soundness perspective, more capital is preferred.

AFFINITY PLUS received a score of 8 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, less than the national average of 15.26.

AFFINITY PLUS's capitalization ratio of 9.00 percent in our test was below the average for all credit unions, a sign that it's less well prepared for financial trouble than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as past-due loans.

A credit union with extensive holdings of these types of assets may eventually be forced to use capital to absorb losses, shrinking its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, diminishing earnings and increasing the risk of a failure in the future.

On Bankrate's asset quality test, AFFINITY PLUS scored 36 out of a possible 40 points, falling short of the national average of 38.15 points.

AFFINITY PLUS's ratio of problem assets was 7.00 percent in our test, identical to the national average.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand economic trouble. Obviously, credit unions that are losing money have less ability to do those things.

AFFINITY PLUS beat the national average on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.

One indication that AFFINITY PLUS is running ahead of its peers in this area was its earnings ratio of 9.00 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.