Safe and Sound

CENTRALALLIANCE

NEENAH, WI
5
Star Rating
Started in 1934, CENTRALALLIANCE is an NCUA-insured credit union headquartered in NEENAH, WI. The credit union holds $74.9 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 13 full-time employees, the credit union has amassed loans and leases worth $33.9 million. CENTRALALLIANCE's 5,339 members currently have $58.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CENTRALALLIANCE 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

Capital is a useful measurement of a credit union's financial strength. It works as a cushion against losses and affords protection for members during times of economic instability for the credit union. When it comes to safety and soundness, the higher the capital, the better.

CENTRALALLIANCE racked up 30 out of a possible 30 points on our test to measure capital adequacy, above the national average of 15.65.

CENTRALALLIANCE had a capitalization ratio of 30.00 percent in our test, better than the average for all credit unions, suggesting that it's stronger than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of troubled assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having extensive holdings of these types of assets suggests a credit union could have to use capital to cover losses, shrinking its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, decreasing earnings and increasing the chances of a failure in the future.

CENTRALALLIANCE scored above the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

A lower-than-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 earning money affects its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or use them to address problematic loans, likely making the credit union more resilient in tough times. Conversely, losses lessen a credit union's ability to do those things.

CENTRALALLIANCE underperformed the average on Bankrate's test of earnings, achieving a score of 10 out of a possible 30.

One indication that CENTRALALLIANCE 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.