Safe and Sound

ALLIANT

CHICAGO, IL
4
Star Rating
ALLIANT is a CHICAGO, IL-based, NCUA-insured credit union dating back to 1935. The credit union has assets of $9.70 billion, according to December 31, 2017, regulatory filings.

Members have $7.23 billion on deposit tended by 496 full-time employees. With that footprint, the credit union currently holds loans and leases worth $7.23 billion. ALLIANT's 385,302 members currently have $8.54 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ALLIANT 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 grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and provides protection for members during times of economic trouble for the credit union. Therefore, when it comes to measuring an an institution's financial stability, capital is valuable. When looking at safety and soundness, more capital is better.

ALLIANT fell below the national average of 15.65 on our test to measure capital adequacy, scoring 14 out of a possible 30 points.

ALLIANT 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, worse than the average for all credit unions.

Asset Quality Score

This test's purpose is to estimate how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid loans.

Having lots of these types of assets could eventually require a credit union to use capital to cover losses, diminishing its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in depressed earnings and potentially more risk of a failure in the future.

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

The credit union'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

A credit union's earnings performance has an effect on its safety and soundness. Earnings may be retained by the credit union, increasing its capital cushion, or be used to address problematic loans, likely making the credit union more resilient in times of trouble. Credit unions that are losing money, however, are less able to do those things.

ALLIANT scored 14 out of a possible 30 on Bankrate's earnings test, beating the national average of 10.11.

ALLIANT had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign that it's outperforming 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.