Safe and Sound

HUDSON HERITAGE

Middletown, NY
3
Star Rating
Middletown, NY-based HUDSON HERITAGE is an NCUA-insured credit union founded in 1940. The credit union has assets of $383.4 million, according to June 30, 2017, regulatory filings.

With 122 full-time employees, the credit union holds loans and leases worth $309.8 million. HUDSON HERITAGE's 38,530 members currently have $333.7 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, HUDSON HERITAGE exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three important criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial resilience, capital is key. It acts as a buffer against losses and provides protection for members when a credit union is struggling financially. When looking at safety and soundness, more capital is preferred.

On our test to measure capital adequacy, HUDSON HERITAGE received a score of 10 out of a possible 30 points, lower than the national average of 15.26.

HUDSON HERITAGE appears to be weaker than its peers in this area, with a capitalization ratio of 9.00 percent in our test, worse than the average for all credit unions.

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 unpaid loans.

A credit union with a large number of these types of assets could eventually have to use capital to cover losses, cutting down on its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in depressed earnings and potentially more risk of a failure in the future.

HUDSON HERITAGE scored below the national average of 38.15 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

The credit union's ratio of problem assets was 7.00 percent in our test, the same as the national average.

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 buffer, or use them to deal with problematic loans, likely making the credit union more resilient in times of trouble. However, credit unions that are losing money are less able to do those things.

HUDSON HERITAGE received below-average marks on Bankrate's earnings test, achieving a score of 4 out of a possible 30.

The credit union had an earnings ratio of 2.00 percent in our test, higher than the average for all credit unions, suggesting that it's beating 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.