Safe and Sound

ALLIANCE CATHOLIC

SOUTHFIELD, MI
5
Star Rating
ALLIANCE CATHOLIC is a SOUTHFIELD, MI-based, NCUA-insured credit union that opened its doors in 1956. As of December 31, 2017, the credit union had assets of $439.3 million.

Members have $197.3 million on deposit tended by 88 full-time employees. With that footprint, the credit union currently holds loans and leases worth $197.3 million. Its 33,940 members currently have $383.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ALLIANCE CATHOLIC exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three key criteria Bankrate used to score U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

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

ALLIANCE CATHOLIC scored below the national average of 15.65 on our test to measure capital adequacy, racking up 14 out of a possible 30 points.

ALLIANCE CATHOLIC appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 14.00 percent in our test, below the average for all credit unions.

Asset Quality Score

Bankrate uses this test to estimate the effect of problem assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

A credit union with large numbers of these kinds of assets may eventually have to use capital to cover losses, cutting down on its buffer 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 depressed earnings and potentially more risk of a future failure.

ALLIANCE CATHOLIC did better than the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

ALLIANCE CATHOLIC's ratio of troubled assets was 0.00 percent in our test, below the national average and suggestive 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 may be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, likely making the credit union more resilient in tough times. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's test of earnings, ALLIANCE CATHOLIC scored 20 out of a possible 30, beating the national average of 10.11.

ALLIANCE CATHOLIC had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign 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.