Safe and Sound

A. E. A.

YUMA, AZ
2
Star Rating
Founded in 1942, A. E. A. is an NCUA-insured credit union headquartered in YUMA, AZ. As of December 31, 2017, the credit union had assets of $248.9 million.

Members have $199.7 million on deposit tended by 91 full-time employees. With that footprint, the credit union currently holds loans and leases worth $199.7 million. A. E. A.'s 30,934 members currently have $222.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, A. E. A. exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three important criteria Bankrate used to score U.S. 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 experiencing economic instability. It follows then that a credit union's level of capital is a useful measurement of its financial strength. When looking at safety and soundness, the higher the capital, the better.

A. E. A. received a score of 0 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, falling short of the national average of 15.65.

Asset Quality Score

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

A credit union with a large number of these types of assets could eventually be forced to use capital to cover losses, cutting down on 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, resulting in depressed earnings and potentially more risk of a failure in the future.

A. E. A. scored 36 out of a possible 40 points on Bankrate's asset quality test, lower than the national average of 38.09.

Troubled assets made up 0.00 percent of A. E. A.'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 ability to earn money has an effect on its safety and soundness. A credit union can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better able to withstand economic trouble. Credit unions that are losing money, however, are less able to do those things.

A. E. A. fell behind the national average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

One sign that the credit union is running ahead of its peers in this area was its earnings ratio of 0.00 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.