Safe and Sound

AIR FORCE

SAN ANTONIO, TX
3
Star Rating
SAN ANTONIO, TX-based AIR FORCE is an NCUA-insured credit union founded in 1952. Regulatory filings show the credit union having assets of $384.8 million, as of June 30, 2017.

With 115 full-time employees, the credit union holds loans and leases worth $291.5 million. Its 42,379 members currently have $353.1 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, AIR FORCE exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three key criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial stability, capital is valuable. It works as a buffer against losses and as protection for members when a credit union is struggling financially. From a safety and soundness perspective, the more capital, the better.

AIR FORCE fell short of the national average of 15.26 on our test to measure capital adequacy, scoring 4 out of a possible 30 points.

AIR FORCE had a capitalization ratio of 7.00 percent in our test, worse than the average for all credit unions, a sign that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

This test is intended 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 lots of these kinds of assets could eventually have to use capital to cover losses, shrinking its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in depressed earnings and potentially more risk of a failure in the future.

AIR FORCE scored 40 out of a possible 40 points on Bankrate's asset quality test, beating out the national average of 38.15.

Troubled assets made up 6.00 percent of AIR FORCE's total assets in our test, lower than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand economic trouble. Losses, on the other hand, lessen a credit union's ability to do those things.

On Bankrate's earnings test, AIR FORCE scored 2 out of a possible 30, falling short of the national average of 10.31.

AIR FORCE had an earnings ratio of 1.00 percent in our test, equal to the average for all credit unions, an indication that it's running neck and neck with its peers in this area.

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.