Safe and Sound

AMERICAN BROADCAST EMPLOYEES

Rockville Centr, NY
3
Star Rating
AMERICAN BROADCAST EMPLOYEES is a Rockville Centr, NY-based, NCUA-insured credit union that opened its doors in 1967. As of June 30, 2017, the credit union held assets of $107.4 million.

Members have $63.4 million on deposit tended by 28 full-time employees. With that footprint, the credit union has amassed loans and leases worth $63.4 million. AMERICAN BROADCAST EMPLOYEES's 9,230 members currently have $96.6 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, AMERICAN BROADCAST EMPLOYEES exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and affords protection for members during periods of economic trouble for the credit union. Therefore, when it comes to measuring an an institution's financial stability, capital is useful. When looking at safety and soundness, more capital is better.

On our test to measure the adequacy of a credit union's capital, AMERICAN BROADCAST EMPLOYEES received a score of 8 out of a possible 30 points, lower than the national average of 15.26.

AMERICAN BROADCAST EMPLOYEES appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 9.00 percent in our test, below the average for all credit unions.

Asset Quality Score

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

A credit union with lots of these types of assets may eventually be forced to use capital to cover losses, reducing its equity cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in diminished earnings and potentially more risk of a failure in the future.

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

A below-average ratio of troubled assets of 4.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. A credit union can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, lessen a credit union's ability to do those things.

AMERICAN BROADCAST EMPLOYEES scored 4 out of a possible 30 on Bankrate's test of earnings, coming in below the national average of 10.31.

AMERICAN BROADCAST EMPLOYEES had an earnings ratio of 1.00 percent in our test, equal to the average for all credit unions, a sign that it's right in line with 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.