Safe and Sound

ARMY AVIATION CENTER

DALEVILLE, AL
5
Star Rating
ARMY AVIATION CENTER is a DALEVILLE, AL-based, NCUA-insured credit union that opened its doors in 1966. The credit union holds $1.21 billion in assets, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 354 full-time employees, the credit union holds loans and leases worth $721.2 million. ARMY AVIATION CENTER's 101,364 members currently have $1.05 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ARMY AVIATION CENTER exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three key criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial fortitude, capital is useful. It acts as a cushion against losses and provides protection for members when a credit union is experiencing economic trouble. When looking at safety and soundness, the more capital, the better.

ARMY AVIATION CENTER did better than the national average of 15.65 points on our test to measure capital adequacy, achieving a score of 16 out of a possible 30 points.

ARMY AVIATION CENTER had a capitalization ratio of 16.00 percent in our test, equal to the average for all credit unions, a sign that it's running neck and neck with its peers.

Asset Quality Score

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

A credit union with lots of these kinds of assets may eventually have to use capital to cover losses, reducing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, pushing down earnings and increasing the risk of a future failure.

ARMY AVIATION CENTER scored 40 out of a possible 40 points on Bankrate's test of asset quality, exceeding the national average of 38.09.

A below-average ratio of problem 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 affects its safety and soundness. Earnings can be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, potentially making the credit union better able to withstand financial trouble. Conversely, losses take away from a credit union's ability to do those things.

ARMY AVIATION CENTER scored 14 out of a possible 30 on Bankrate's test of earnings, exceeding the national average of 10.11.

One indication that ARMY AVIATION CENTER is outperforming 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.