Safe and Sound

ALLIANT

DUBUQUE, IA
5
Star Rating
ALLIANT is an NCUA-insured credit union founded in 1933 and currently headquartered in DUBUQUE, IA. The credit union holds assets of $122.3 million, according to December 31, 2017, regulatory filings.

Members have $88.3 million on deposit tended by 32 full-time employees. With that footprint, the credit union holds loans and leases worth $88.3 million. Its 10,513 members currently have $107.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ALLIANT exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union faired on the three major criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members when a credit union is experiencing financial trouble. It follows then that when it comes to measuring an a credit union's financial strength, capital is crucial. When looking at safety and soundness, more capital is preferred.

ALLIANT received a score of 14 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, coming in below the national average of 15.65.

ALLIANT appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 14.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

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

Having lots of these kinds of assets suggests a credit union could have to use capital to absorb losses, diminishing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a failure in the future.

ALLIANT scored 40 out of a possible 40 points on Bankrate's asset quality test, exceeding the national average of 38.09.

The credit union's ratio of problem assets was 0.00 percent in our test, below the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. Earnings may be retained by the credit union, boosting its capital cushion, or be used to deal with problematic loans, potentially making the credit union more resilient in tough times. However, credit unions that are losing money have less ability to do those things.

ALLIANT did above-average on Bankrate's earnings test, achieving a score of 16 out of a possible 30.

One indication that the credit union is outperforming 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.