Safe and Sound

ALASKA USA

Anchorage, AK
3
Star Rating
Started in 1948, ALASKA USA is an NCUA-insured credit union headquartered in Anchorage, AK. As of June 30, 2017, the credit union held assets of $6.86 billion.

Thanks to the efforts of 1,884 full-time employees, the credit union holds loans and leases worth $5.75 billion. Its 628,160 members currently have $6.18 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, ALASKA USA exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three major criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and provides protection for members when a credit union is experiencing economic trouble. It follows then that an institution's level of capital is a useful measurement of its financial strength. From a safety and soundness perspective, the higher the capital, the better.

On our test to measure capital adequacy, ALASKA USA received a score of 6 out of a possible 30 points, less than the national average of 15.26.

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

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

A credit union with lots of these kinds of assets could eventually be required to use capital to absorb losses, decreasing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, reducing earnings and increasing the chances of a failure in the future.

ALASKA USA finished below the national average of 38.15 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

Troubled assets made up 11.00 percent of ALASKA USA's total assets in our test, above the national average and something to watch.

Earnings score

A credit union's ability to earn money affects its safety and soundness. Earnings may be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, potentially making the credit union more resilient in tough times. Credit unions that are losing money, however, have less ability to do those things.

ALASKA USA fell short of the national average on Bankrate's test of earnings, achieving a score of 10 out of a possible 30.

One sign that the credit union is beating its peers in this area was its earnings ratio of 4.00 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.