Safe and Sound

ALEXANDRIA T & P

ALEXANDRIA, LA
4
Star Rating
Started in 1951, ALEXANDRIA T & P is an NCUA-insured credit union based in ALEXANDRIA, LA. The credit union holds $7.6 million in assets, according to December 31, 2017, regulatory filings.

With 5 full-time employees, the credit union has amassed loans and leases worth $4.3 million. Its 842 members currently have $6.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ALEXANDRIA T & P exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three major criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members during periods of financial trouble for the credit union. It follows then that an institution's level of capital is an essential measurement of its financial strength. When looking at safety and soundness, more capital is preferred.

ALEXANDRIA T & P achieved a score of 22 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, exceeding the national average of 15.65.

ALEXANDRIA T & P's capitalization ratio of 22.00 percent in our test was better than 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 is intended to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as past-due loans.

Having large numbers of these types of assets means a credit union may have to use capital to absorb losses, diminishing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

ALEXANDRIA T & P scored 36 out of a possible 40 points on Bankrate's asset quality test, failing to reach the national average of 38.09.

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 earning money affects its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, likely making the credit union better able to withstand economic shocks. Losses, on the other hand, diminish a credit union's ability to do those things.

ALEXANDRIA T & P scored 4 out of a possible 30 on Bankrate's earnings test, less than the national average of 10.11.

One indication that ALEXANDRIA T & P is running ahead of 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.