Safe and Sound

ALEXANDRIA MUNICIPAL EMPLOYEES

ALEXANDRIA, LA
4
Star Rating
ALEXANDRIA MUNICIPAL EMPLOYEES is an ALEXANDRIA, LA-based, NCUA-insured credit union founded in 1951. Regulatory filings show the credit union having $22.3 million in assets, as of December 31, 2017.

Thanks to the efforts of 6 full-time employees, the credit union holds loans and leases worth $12.8 million. ALEXANDRIA MUNICIPAL EMPLOYEES's 2,396 members currently have $19.0 million in shares with the credit union.

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

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of a credit union's financial strength. It works as a buffer against losses and provides protection for members when a credit union is experiencing financial instability. When it comes to safety and soundness, more capital is preferred.

On our test to measure capital adequacy, ALEXANDRIA MUNICIPAL EMPLOYEES racked up 18 out of a possible 30 points, better than the national average of 15.65.

ALEXANDRIA MUNICIPAL EMPLOYEES appears to be on more solid financial footing than its peers, with a capitalization ratio of 18.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with extensive holdings of these types of assets could eventually be forced to use capital to cover losses, diminishing its equity cushion. 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 failure in the future.

On Bankrate's test of asset quality, ALEXANDRIA MUNICIPAL EMPLOYEES scored 40 out of a possible 40 points, better than the national average of 38.09 points.

ALEXANDRIA MUNICIPAL EMPLOYEES's ratio of problem assets was 0.00 percent in our test, beneath the national average and suggestive of superior financial strength compared to 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, boosting its capital cushion, or put them to work addressing problematic loans, likely making the credit union better prepared to withstand economic shocks. Obviously, credit unions that are losing money have less ability to do those things.

ALEXANDRIA MUNICIPAL EMPLOYEES scored 10 out of a possible 30 on Bankrate's test of earnings, less than the national average of 10.11.

ALEXANDRIA MUNICIPAL EMPLOYEES had an earnings ratio of 0.00 percent in our test, higher 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.