Safe and Sound

ARKANSAS AM & N COLLEGE

PINE BLUFF, AR
2
Star Rating
Started in 1952, ARKANSAS AM & N COLLEGE is an NCUA-insured credit union headquartered in PINE BLUFF, AR. The credit union has assets of $2.2 million, according to December 31, 2017, regulatory filings.

Its 1,017 members currently have $2.0 million in shares with the credit union. With that footprint, the credit union has amassed loans and leases worth $1.2 million.

Overall, Bankrate believes that, as of December 31, 2017, ARKANSAS AM & N COLLEGE exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to grade U.S. credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and as protection for members when a credit union is experiencing financial trouble. Therefore, when it comes to measuring an an institution's financial strength, capital is valuable. When it comes to safety and soundness, the higher the capital, the better.

ARKANSAS AM & N COLLEGE finished below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, receiving a score of 8 out of a possible 30 points.

ARKANSAS AM & N COLLEGE appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 8.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

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

A credit union with large numbers of these types of assets could eventually be required to use capital to cover losses, shrinking its buffer of equity. 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 depressed earnings and potentially more risk of a failure in the future.

ARKANSAS AM & N COLLEGE scored 36 out of a possible 40 points on Bankrate's test of asset quality, lower than the national average of 38.09.

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. Earnings may be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, likely making the credit union more resilient in times of trouble. Conversely, losses reduce a credit union's ability to do those things.

ARKANSAS AM & N COLLEGE received below-average marks on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

One sign that the credit union is beating 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.