Safe and Sound

ARKANSAS SUPERIOR

WARREN, AR
5
Star Rating
WARREN, AR-based ARKANSAS SUPERIOR is an NCUA-insured credit union started in 1957. As of December 31, 2017, the credit union held assets of $75.4 million.

Thanks to the efforts of 21 full-time employees, the credit union holds loans and leases worth $41.0 million. ARKANSAS SUPERIOR's 10,538 members currently have $60.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ARKANSAS SUPERIOR exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union faired on the three important criteria Bankrate used to evaluate 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 affords protection for members during periods of financial instability for the credit union. It follows then that when it comes to measuring an an institution's financial fortitude, capital is important. When looking at safety and soundness, more capital is better.

On our test to measure capital adequacy, ARKANSAS SUPERIOR racked up 30 out of a possible 30 points, beating the national average of 15.65.

ARKANSAS SUPERIOR appears to be more resilient than its peers, with a capitalization ratio of 30.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

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

A credit union with a large number of these kinds of assets could eventually have to use capital to absorb losses, reducing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in depressed earnings and potentially more risk of a future failure.

ARKANSAS SUPERIOR scored 40 out of a possible 40 points on Bankrate's test of asset quality, better than the national average of 38.09.

A below-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

A credit union's ability to earn money has an effect on its long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, likely making the credit union more resilient in times of trouble. Conversely, losses take away from a credit union's ability to do those things.

ARKANSAS SUPERIOR beat the national average on Bankrate's earnings test, achieving a score of 14 out of a possible 30.

One sign that ARKANSAS SUPERIOR is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.