Safe and Sound

AMERICA'S

GARLAND, TX
4
Star Rating
GARLAND, TX-based AMERICA'S is an NCUA-insured credit union founded in 1934. Regulatory filings show the credit union having assets of $239.6 million, as of June 30, 2017.

Thanks to the efforts of 60 full-time employees, the credit union has amassed loans and leases worth $124.3 million. AMERICA'S's 22,774 members currently have $209.0 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, AMERICA'S 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 major criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members during times of financial trouble for the credit union. Therefore, when it comes to measuring an an institution's financial resilience, capital is key. 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, AMERICA'S racked up 16 out of a possible 30 points, beating out the national average of 15.26.

AMERICA'S appears to be weaker than its peers in this area, with a capitalization ratio of 12.00 percent in our test, below the average for all credit unions.

Asset Quality Score

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

A credit union with large numbers of these types of assets could eventually be required to use capital to absorb losses, cutting down on its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, reducing earnings and increasing the risk of a failure in the future.

AMERICA'S scored above the national average of 38.15 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

Troubled assets made up 2.00 percent of AMERICA'S's total assets in our test, lower than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. A credit union can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, likely making the credit union better able to withstand financial trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

AMERICA'S fell short of the national average on Bankrate's earnings test, achieving a score of 2 out of a possible 30.

AMERICA'S had an earnings ratio of 0.00 percent in our test, less than the average for all credit unions, a sign that it's underperforming 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.