Safe and Sound

ADVANCIAL

Dallas, TX
4
Star Rating
ADVANCIAL is an NCUA-insured credit union founded in 1937 and currently headquartered in Dallas, TX. The credit union holds $1.56 billion in assets, according to December 31, 2017, regulatory filings.

With 221 full-time employees, the credit union has amassed loans and leases worth $1.29 billion. Its 84,828 members currently have $1.30 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ADVANCIAL exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three important criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is crucial. It works as a bulwark against losses and affords protection for members during periods of financial instability for the credit union. From a safety and soundness perspective, more capital is preferred.

On our test to measure capital adequacy, ADVANCIAL received a score of 8 out of a possible 30 points, below the national average of 15.65.

ADVANCIAL had a capitalization ratio of 8.00 percent in our test, lower than the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

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

Having lots of these types of assets could eventually require a credit union to use capital to cover losses, shrinking its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in lower earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, ADVANCIAL scored 36 out of a possible 40 points, below the national average of 38.09 points.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, below the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. A credit union can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. However, credit unions that are losing money have less ability to do those things.

ADVANCIAL scored 14 out of a possible 30 on Bankrate's earnings test, above the national average of 10.11.

ADVANCIAL had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign that it's doing better than 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.