Safe and Sound

ALDERSON FCI

Alderson, WV
4
Star Rating
ALDERSON FCI is an NCUA-insured credit union started in 1955 and currently headquartered in Alderson, WV. Regulatory filings show the credit union having assets of $7.9 million, as of December 31, 2017.

ALDERSON FCI's 937 members currently have $6.7 million in shares with the credit union. With that footprint, the credit union currently holds loans and leases worth $5.5 million.

Overall, Bankrate believes that, as of December 31, 2017, ALDERSON FCI 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 grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members during times of financial instability for the credit union. It follows then that a credit union's level of capital is a key measurement of its financial resilience. When it comes to safety and soundness, the more capital, the better.

ALDERSON FCI exceeded the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, receiving a score of 20 out of a possible 30 points.

ALDERSON FCI's capitalization ratio of 20.00 percent in our test was higher than the average for all credit unions, a sign that it's more well prepared for financial trouble than its peers.

Asset Quality Score

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

Having a large number of these kinds of assets could eventually require a credit union to use capital to cover losses, cutting down on its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in lower earnings and potentially more risk of a future failure.

ALDERSON FCI scored below the national average of 38.09 on Bankrate's test of asset quality, racking up 24 out of a possible 40 points .

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. Earnings can be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. However, credit unions that are losing money are less able to do those things.

ALDERSON FCI exceeded the national average on Bankrate's test of earnings, achieving a score of 20 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, an indication 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.