Safe and Sound

AMERICAN AIRLINES

Fort Worth, TX
4
Star Rating
AMERICAN AIRLINES is a Fort Worth, TX-based, NCUA-insured credit union started in 1982. As of June 30, 2017, the credit union had assets of $6.54 billion.

With 634 full-time employees, the credit union holds loans and leases worth $4.03 billion. AMERICAN AIRLINES's 275,006 members currently have $5.84 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, AMERICAN AIRLINES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three major criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of a credit union's financial fortitude. It works as a bulwark against losses and as protection for members during times of economic instability for the credit union. When looking at safety and soundness, the higher the capital, the better.

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

AMERICAN AIRLINES had a capitalization ratio of 10.00 percent in our test, below the average for all credit unions, a sign that it's less well prepared for financial trouble than its peers.

Asset Quality Score

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

A credit union with a large number of these kinds of assets could eventually have to use capital to cover losses, cutting down on its buffer of equity. 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.

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

A below-average ratio of problem assets of 2.00 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, increasing its capital buffer, or be used to address problematic loans, likely making the credit union better prepared to withstand financial trouble. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's earnings test, AMERICAN AIRLINES scored 8 out of a possible 30, below the national average of 10.31.

One sign that AMERICAN AIRLINES is beating its peers in this area was its earnings ratio of 4.00 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.