Safe and Sound

AIR ACADEMY

Colorado Spring, CO
4
Star Rating
Colorado Spring, CO-based AIR ACADEMY is an NCUA-insured credit union founded in 1955. The credit union has $565.6 million in assets, according to June 30, 2017, regulatory filings.

Members have $460.5 million on deposit tended by 122 full-time employees. With that footprint, the credit union currently holds loans and leases worth $460.5 million. AIR ACADEMY's 47,712 members currently have $514.7 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, AIR ACADEMY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three key criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an a credit union's financial resilience, capital is important. When it comes to safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, AIR ACADEMY received a score of 8 out of a possible 30 points, failing to reach the national average of 15.26.

AIR ACADEMY's capitalization ratio of 8.00 percent in our test was worse than the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

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

Having a large number of these kinds of assets may eventually force a credit union to use capital to cover losses, diminishing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, decreasing earnings and elevating the chances of a future failure.

On Bankrate's asset quality test, AIR ACADEMY scored 40 out of a possible 40 points, exceeding the national average of 38.15 points.

A lower-than-average ratio of troubled assets of 6.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its long-term survivability. A credit union can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand economic trouble. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's earnings test, AIR ACADEMY scored 14 out of a possible 30, beating out the national average of 10.31.

One sign that the credit union is running ahead of its peers in this area was its earnings ratio of 7.00 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.