Safe and Sound

NORTH ALABAMA PAPERMAKERS

STEVENSON, AL
5
Star Rating
Founded in 1975, NORTH ALABAMA PAPERMAKERS is an NCUA-insured credit union headquartered in STEVENSON, AL. The credit union has $2.3 million in assets, according to December 31, 2017, regulatory filings.

The credit union holds loans and leases worth $1.1 million. NORTH ALABAMA PAPERMAKERS's 380 members currently have $1.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NORTH ALABAMA PAPERMAKERS exhibited a superior condition, earning a full 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 American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial resilience, capital is essential. It acts as a cushion against losses and affords protection for members when a credit union is struggling financially. When looking at safety and soundness, the higher the capital, the better.

NORTH ALABAMA PAPERMAKERS achieved a score of 30 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, better than the national average of 15.65.

NORTH ALABAMA PAPERMAKERS's capitalization ratio of 30.00 percent in our test was above the average for all credit unions, a sign that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as past-due loans.

A credit union with extensive holdings of these kinds of assets may eventually be forced to use capital to absorb losses, cutting down on its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in lower earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, NORTH ALABAMA PAPERMAKERS scored 40 out of a possible 40 points, better than the national average of 38.09 points.

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. A credit union can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. Conversely, losses diminish a credit union's ability to do those things.

On Bankrate's earnings test, NORTH ALABAMA PAPERMAKERS scored 2 out of a possible 30, less than the national average of 10.11.

One sign that NORTH ALABAMA PAPERMAKERS is doing better than 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.