Safe and Sound

ALLIED TRADES

STOCKTON, CA
4
Star Rating
ALLIED TRADES is an NCUA-insured credit union started in 1953 and currently headquartered in STOCKTON, CA. The credit union has $24.8 million in assets, according to June 30, 2017, regulatory filings.

Members have $7.1 million on deposit tended by 4 full-time employees. With that footprint, the credit union currently holds loans and leases worth $7.1 million. Its 1,956 members currently have $21.6 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, ALLIED TRADES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members when a credit union is experiencing financial instability. Therefore, when it comes to measuring an an institution's financial stability, capital is useful. When it comes to safety and soundness, the higher the capital, the better.

ALLIED TRADES beat out the national average of 15.26 points on our test to measure the adequacy of a credit union's capital, scoring 16 out of a possible 30 points.

ALLIED TRADES 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, worse than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to estimate the impact of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with extensive holdings of these types of assets may eventually have to use capital to absorb losses, reducing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in depressed earnings and potentially more risk of a future failure.

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

A below-average ratio of problem assets of 1.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better able to withstand economic trouble. Conversely, losses reduce a credit union's ability to do those things.

ALLIED TRADES did below-average on Bankrate's test of earnings, achieving a score of 8 out of a possible 30.

One indication that the credit union is beating its peers in this area was its earnings ratio of 3.00 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.