Safe and Sound

ALTON MUNICIPAL EMPLOYEES

ALTON, IL
4
Star Rating
ALTON, IL-based ALTON MUNICIPAL EMPLOYEES is an NCUA-insured credit union founded in 1955. Regulatory filings show the credit union having assets of $607,018, as of December 31, 2017.

Its 252 members currently have $446,510 in shares with the credit union. With that footprint, the credit union has amassed loans and leases worth $499,533.

Overall, Bankrate believes that, as of December 31, 2017, ALTON MUNICIPAL EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to evaluate American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of an institution's financial strength. It works as a buffer against losses and affords protection for members when a credit union is experiencing economic trouble. When looking at safety and soundness, more capital is better.

On our test to measure capital adequacy, ALTON MUNICIPAL EMPLOYEES racked up 30 out of a possible 30 points, exceeding the national average of 15.65.

ALTON MUNICIPAL EMPLOYEES had a capitalization ratio of 30.00 percent in our test, above the average for all credit unions, suggesting that it's on more solid financial footing than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the effect of problem assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having lots of these kinds of assets suggests a credit union could have to use capital to cover 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 money, resulting in reduced earnings and potentially more risk of a failure in the future.

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

ALTON MUNICIPAL EMPLOYEES's ratio of troubled assets was 0.00 percent in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or use them to address problematic loans, likely making the credit union better prepared to withstand economic trouble. Conversely, losses diminish a credit union's ability to do those things.

ALTON MUNICIPAL EMPLOYEES scored 0 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 10.11.

One sign that the credit union is doing better than 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.