Safe and Sound

ALLIANT

CHICAGO, IL
4
Star Rating
ALLIANT is a CHICAGO, IL-based, NCUA-insured credit union started in 1935. As of June 30, 2017, the credit union had assets of $9.89 billion.

Members have $6.68 billion on deposit tended by 469 full-time employees. With that footprint, the credit union currently holds loans and leases worth $6.68 billion. ALLIANT's 368,681 members currently have $8.54 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, ALLIANT exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three important criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides protection for members when a credit union is struggling financially. Therefore, a credit union's level of capital is a crucial measurement of its financial fortitude. When it comes to safety and soundness, the more capital, the better.

On our test to measure capital adequacy, ALLIANT received a score of 12 out of a possible 30 points, lower than the national average of 15.26.

ALLIANT's capitalization ratio of 11.00 percent in our test was worse than the average for all credit unions, a sign that it's weaker than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as past-due mortgages.

A credit union with a large number of these types of assets may eventually be required to use capital to cover losses, cutting down on its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in depressed earnings and potentially more risk of a failure in the future.

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

A lower-than-average ratio of problem assets of 3.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. Earnings can be retained by the credit union, boosting its capital cushion, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money have less ability to do those things.

ALLIANT scored 14 out of a possible 30 on Bankrate's test of earnings, beating the national average of 10.31.

One sign that the credit union is beating its peers in this area was its earnings ratio of 7.00 percent in our test, above 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.