Safe and Sound

AP

TOLEDO, OH
3
Star Rating
TOLEDO, OH-based AP is an NCUA-insured credit union founded in 1956. As of June 30, 2017, the credit union held assets of $35.5 million.

Members have $15.6 million on deposit tended by 14 full-time employees. With that footprint, the credit union holds loans and leases worth $15.6 million. AP's 4,365 members currently have $31.3 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, AP exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three important 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 affords protection for members when a credit union is experiencing economic trouble. Therefore, when it comes to measuring an a credit union's financial strength, capital is useful. When it comes to safety and soundness, the higher the capital, the better.

AP fell below the national average of 15.26 on our test to measure capital adequacy, achieving a score of 14 out of a possible 30 points.

AP's capitalization ratio of 11.00 percent in our test was lower than the average for all credit unions, a sign that it's on less solid financial footing than its peers.

Asset Quality Score

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

Having a large number of these kinds of assets may eventually require a credit union to use capital to cover losses, decreasing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in diminished earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, AP scored 36 out of a possible 40 points, lower than the national average of 38.15 points.

The credit union's ratio of troubled assets was 14.00 percent in our test, higher than the national average and a potential area of concern.

Earnings score

A credit union's profitability has an effect on its long-term survivability. Earnings may be retained by the credit union, increasing its capital cushion, or be used to address problematic loans, likely making the credit union better prepared to withstand financial shocks. Obviously, credit unions that are losing money have less ability to do those things.

AP underperformed the average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

One indication that AP is lagging behind its peers in this area was its earnings ratio of -13.00 percent in our test, lower 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.