Safe and Sound

A. B. & W. EMP. CREDIT UNION INC

ALEXANDRIA, VA
4
Star Rating
ALEXANDRIA, VA-based A. B. & W. EMP. CREDIT UNION INC is an NCUA-insured credit union founded in 1952. Regulatory filings show the credit union having assets of $32.2 million, as of December 31, 2017.

Thanks to the work of 9 full-time employees, the credit union holds loans and leases worth $18.8 million. A. B. & W. EMP. CREDIT UNION INC's 4,234 members currently have $26.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, A. B. & W. EMP. CREDIT UNION INC 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 key criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members during periods of financial instability for the credit union. Therefore, when it comes to measuring an an institution's financial stability, capital is valuable. When looking at safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, A. B. & W. EMP. CREDIT UNION INC racked up 22 out of a possible 30 points, beating out the national average of 15.65.

A. B. & W. EMP. CREDIT UNION INC's capitalization ratio of 22.00 percent in our test was above the average for all credit unions, suggesting that it's stronger than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of problem assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

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

A. B. & W. EMP. CREDIT UNION INC did better than the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

A. B. & W. EMP. CREDIT UNION INC's ratio of problem assets was 0.00 percent in our test, less than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. Earnings may be retained by the credit union, giving a boost to its capital cushion, or be used to deal with 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.

A. B. & W. EMP. CREDIT UNION INC received below-average marks on Bankrate's test of earnings, achieving a score of 6 out of a possible 30.

A. B. & W. EMP. CREDIT UNION INC had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, a sign that it's running ahead of 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.