Safe and Sound

ALIGN

LOWELL, MA
4
Star Rating
ALIGN is an NCUA-insured credit union founded in 1922 and currently headquartered in LOWELL, MA. The credit union holds assets of $600.1 million, according to June 30, 2017, regulatory filings.

With 111 full-time employees, the credit union currently holds loans and leases worth $371.9 million. ALIGN's 28,049 members currently have $430.5 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, ALIGN exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members when a credit union is struggling financially. Therefore, an institution's level of capital is a crucial measurement of its financial strength. When looking at safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, ALIGN received a score of 14 out of a possible 30 points, coming in below the national average of 15.26.

ALIGN appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 12.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

This test is intended to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as unpaid mortgages.

A credit union with a large number of these types of assets may eventually have to use capital to absorb losses, shrinking its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

ALIGN scored 40 out of a possible 40 points on Bankrate's test of asset quality, exceeding the national average of 38.15.

A lower-than-average ratio of problem assets of 2.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its long-term survivability. Earnings may be retained by the credit union, boosting its capital buffer, or be used to address problematic loans, potentially making the credit union better prepared to withstand financial shocks. Conversely, losses lessen a credit union's ability to do those things.

ALIGN fell short of the national average on Bankrate's earnings test, achieving a score of 6 out of a possible 30.

ALIGN had an earnings ratio of 2.00 percent in our test, above the average for all credit unions, a sign 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.