Safe and Sound

SPIRIT OF ALASKA

Fairbanks, AK
4
Star Rating
SPIRIT OF ALASKA is an NCUA-insured credit union started in 1960 and currently based in Fairbanks, AK. The credit union has assets of $149.2 million, according to December 31, 2017, regulatory filings.

With 39 full-time employees, the credit union currently holds loans and leases worth $107.2 million. Its 9,344 members currently have $126.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SPIRIT OF ALASKA exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three major criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and as protection for members during periods of economic trouble for the credit union. It follows then that when it comes to measuring an a credit union's financial stability, capital is valuable. From a safety and soundness perspective, the higher the capital, the better.

SPIRIT OF ALASKA received a score of 14 out of a possible 30 points on our test to measure capital adequacy, falling short of the national average of 15.65.

SPIRIT OF ALASKA's capitalization ratio of 14.00 percent in our test was worse than the average for all credit unions, an indication that it could be less resilient in a crisis than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of troubled assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

A credit union with lots of these types of assets may eventually be forced to use capital to absorb losses, reducing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, decreasing earnings and elevating the chances of a failure in the future.

SPIRIT OF ALASKA fell below the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

SPIRIT OF ALASKA's ratio of troubled assets was 0.00 percent in our test, lower than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its long-term survivability. A credit union can retain its earnings, boosting its capital cushion, or use them to address problematic loans, likely making the credit union better prepared to withstand economic trouble. Obviously, credit unions that are losing money have less ability to do those things.

SPIRIT OF ALASKA scored 12 out of a possible 30 on Bankrate's test of earnings, better than the national average of 10.11.

One sign that the credit union is beating 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.