Safe and Sound

MATANUSKA VALLEY

Palmer, AK
4
Star Rating
Palmer, AK-based MATANUSKA VALLEY is an NCUA-insured credit union founded in 1948. The credit union holds $496.0 million in assets, according to December 31, 2017, regulatory filings.

With 157 full-time employees, the credit union currently holds loans and leases worth $263.7 million. MATANUSKA VALLEY's 43,961 members currently have $436.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MATANUSKA VALLEY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three major criteria Bankrate used to evaluate American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and as protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial strength, capital is valuable. From a safety and soundness perspective, the higher the capital, the better.

On our test to measure capital adequacy, MATANUSKA VALLEY received a score of 12 out of a possible 30 points, lower than the national average of 15.65.

MATANUSKA VALLEY had a capitalization ratio of 12.00 percent in our test, lower than the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

Asset Quality Score

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

A credit union with extensive holdings of these types of assets could eventually be forced to use capital to absorb losses, shrinking 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, pushing down earnings and elevating the risk of a future failure.

MATANUSKA VALLEY scored below the national average of 38.09 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

MATANUSKA VALLEY's ratio of problem assets was 0.00 percent in our test, lower than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance affects its safety and soundness. Earnings may be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, likely making the credit union better able to withstand financial trouble. However, credit unions that are losing money have less ability to do those things.

MATANUSKA VALLEY scored 12 out of a possible 30 on Bankrate's earnings test, above the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's doing better than its peers in this area.

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.