Safe and Sound

ALBA-GOLDEN

Alba, TX
4
Star Rating
Started in 1960, ALBA-GOLDEN is an NCUA-insured credit union headquartered in Alba, TX. The credit union has assets of $13.8 million, according to June 30, 2017, regulatory filings.

Thanks to the efforts of 3 full-time employees, the credit union currently holds loans and leases worth $7.3 million. ALBA-GOLDEN's 1,361 members currently have $11.5 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, ALBA-GOLDEN exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three key criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark 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 crucial measurement of its financial strength. When looking at safety and soundness, the more capital, the better.

On our test to measure capital adequacy, ALBA-GOLDEN scored 22 out of a possible 30 points, better than the national average of 15.26.

ALBA-GOLDEN appears to be stronger than its peers, with a capitalization ratio of 15.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

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

Having large numbers of these kinds of assets could eventually require a credit union to use capital to cover losses, reducing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a future failure.

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

A lower-than-average ratio of problem assets of 1.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses take away from a credit union's ability to do those things.

ALBA-GOLDEN fell behind the national average on Bankrate's earnings test, achieving a score of 4 out of a possible 30.

The credit union had an earnings ratio of 2.00 percent in our test, above the average for all credit unions, suggesting that it's outperforming 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.