Safe and Sound

ALLIANCE CREDIT UNION OF FLORIDA

Gainesville, FL
2
Star Rating
ALLIANCE CREDIT UNION OF FLORIDA is an NCUA-insured credit union started in 1991 and currently headquartered in GAINESVILLE, FL. As of December 31, 2017, the credit union had assets of $49.0 million.

Members have $33.1 million on deposit tended by 18 full-time employees. With that footprint, the credit union currently holds loans and leases worth $33.1 million. ALLIANCE CREDIT UNION OF FLORIDA's 5,807 members currently have $44.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ALLIANCE CREDIT UNION OF FLORIDA exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three major criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and provides protection for members during periods of economic instability for the credit union. It follows then that when it comes to measuring an a credit union's financial fortitude, capital is key. From a safety and soundness perspective, the higher the capital, the better.

On our test to measure capital adequacy, ALLIANCE CREDIT UNION OF FLORIDA received a score of 6 out of a possible 30 points, coming in below the national average of 15.65.

ALLIANCE CREDIT UNION OF FLORIDA had a capitalization ratio of 6.00 percent in our test, less than the average for all credit unions, an indication that it's on less solid financial footing than its peers.

Asset Quality Score

Bankrate uses this test to estimate the impact of problem assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having extensive holdings of these types of assets may eventually force a credit union to use capital to absorb losses, diminishing its equity cushion. It also means that there are likely to be many assets that are 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.

ALLIANCE CREDIT UNION OF FLORIDA scored 32 out of a possible 40 points on Bankrate's asset quality test, falling short of the national average of 38.09.

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability has an effect on its long-term survivability. Earnings may be retained by the credit union, expanding its capital cushion, or be used to deal with problematic loans, likely making the credit union better prepared to withstand economic trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

ALLIANCE CREDIT UNION OF FLORIDA scored 4 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 10.11.

One indication that the credit union is beating its peers in this area was its earnings ratio of 0.00 percent in our test, higher than 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.