Safe and Sound

ALBA-GOLDEN

Alba, TX
5
Star Rating
Alba, TX-based ALBA-GOLDEN is an NCUA-insured credit union started in 1960. Regulatory filings show the credit union having $14.6 million in assets, as of December 31, 2017.

With 3 full-time employees, the credit union holds loans and leases worth $7.7 million. ALBA-GOLDEN's 1,381 members currently have $12.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ALBA-GOLDEN exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three important criteria Bankrate used to grade U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of a credit union's financial fortitude. It works as a cushion against losses and as protection for members when a credit union is struggling financially. When looking at safety and soundness, more capital is better.

ALBA-GOLDEN did better than the national average of 15.65 points on our test to measure capital adequacy, racking up 22 out of a possible 30 points.

ALBA-GOLDEN had a capitalization ratio of 22.00 percent in our test, above the average for all credit unions, suggesting that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid mortgages.

A credit union with lots of these types of assets could eventually be forced to use capital to absorb losses, reducing 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 interest for the credit union, reducing earnings and elevating the risk of a future failure.

ALBA-GOLDEN beat out the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

Earnings score

How successful a credit union is at making money affects its long-term survivability. Earnings can be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

ALBA-GOLDEN scored 12 out of a possible 30 on Bankrate's earnings test, better than the national average of 10.11.

ALBA-GOLDEN had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting 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.