Safe and Sound

ANGELINA FEDERAL EMPLOYEES

Lufkin, TX
5
Star Rating
Started in 1952, ANGELINA FEDERAL EMPLOYEES is an NCUA-insured credit union based in LUFKIN, TX. As of December 31, 2017, the credit union had assets of $27.4 million.

Thanks to the work of 7 full-time employees, the credit union has amassed loans and leases worth $18.2 million. ANGELINA FEDERAL EMPLOYEES's 2,520 members currently have $23.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ANGELINA FEDERAL EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three important criteria Bankrate used to grade 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 provides protection for members during periods of financial instability for the credit union. Therefore, an institution's level of capital is a useful measurement of its financial strength. When looking at safety and soundness, the more capital, the better.

ANGELINA FEDERAL EMPLOYEES scored 16 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, beating out the national average of 15.65.

ANGELINA FEDERAL EMPLOYEES's capitalization ratio of 16.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

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

A credit union with lots of these types of assets may eventually have to use capital to cover losses, shrinking its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in diminished earnings and potentially more risk of a failure in the future.

ANGELINA FEDERAL EMPLOYEES scored 40 out of a possible 40 points on Bankrate's test of asset quality, above the national average of 38.09.

A below-average ratio of troubled 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 earnings performance affects its safety and soundness. Earnings may be retained by the credit union, expanding its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money have less ability to do those things.

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

One sign that ANGELINA FEDERAL EMPLOYEES is beating its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.