Safe and Sound

ALASKA AIR GROUP

SEATAC, WA
4
Star Rating
ALASKA AIR GROUP is an NCUA-insured credit union started in 1952 and currently based in SEATAC, WA. As of December 31, 2017, the credit union had assets of $66.3 million.

Thanks to the work of 14 full-time employees, the credit union currently holds loans and leases worth $33.0 million. Its 6,361 members currently have $55.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ALASKA AIR GROUP exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three major criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and provides protection for members when a credit union is experiencing economic trouble. It follows then that when it comes to measuring an a credit union's financial strength, capital is crucial. When it comes to safety and soundness, more capital is preferred.

ALASKA AIR GROUP achieved a score of 22 out of a possible 30 points on our test to measure capital adequacy, exceeding the national average of 15.65.

ALASKA AIR GROUP had a capitalization ratio of 22.00 percent in our test, better than the average for all credit unions, suggesting that it could be more resilient in a crisis than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as unpaid mortgages.

A credit union with lots of these types of assets could eventually be required to use capital to cover losses, cutting down on its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in diminished earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, ALASKA AIR GROUP scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

ALASKA AIR GROUP's ratio of troubled assets was 0.00 percent in our test, below the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand economic trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

ALASKA AIR GROUP scored 6 out of a possible 30 on Bankrate's earnings test, lower than the national average of 10.11.

One indication that the credit union is doing better than 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.