Safe and Sound

ACE

Mason City, IA
4
Star Rating
ACE is a Mason City, IA-based, NCUA-insured credit union founded in 1934. As of December 31, 2017, the credit union had assets of $9.2 million.

Its 902 members currently have $8.0 million in shares with the credit union. With that footprint, the credit union has amassed loans and leases worth $2.1 million.

Overall, Bankrate believes that, as of December 31, 2017, ACE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three important criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and provides protection for members when a credit union is experiencing economic instability. Therefore, a credit union's level of capital is a crucial measurement of its financial resilience. When it comes to safety and soundness, the higher the capital, the better.

ACE exceeded the national average of 15.65 points on our test to measure capital adequacy, scoring 16 out of a possible 30 points.

ACE's capitalization ratio of 16.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

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

A credit union with lots of these kinds of assets may eventually have to use capital to absorb losses, reducing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in lower earnings and potentially more risk of a failure in the future.

ACE scored 40 out of a possible 40 points on Bankrate's test of asset quality, exceeding the national average of 38.09.

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or use them to deal with problematic loans, likely making the credit union better able to withstand financial trouble. Conversely, losses reduce a credit union's ability to do those things.

ACE received below-average marks on Bankrate's earnings test, achieving a score of 6 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting 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.