Safe and Sound

USALLIANCE

RYE, NY
4
Star Rating
RYE, NY-based USALLIANCE is an NCUA-insured credit union started in 1966. As of June 30, 2017, the credit union had assets of $1.28 billion.

With 247 full-time employees, the credit union currently holds loans and leases worth $1.09 billion. Its 96,590 members currently have $925.0 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, USALLIANCE exhibited a good condition, earning 4 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 score U.S. 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 experiencing financial trouble. Therefore, an institution's level of capital is a useful measurement of its financial fortitude. From a safety and soundness perspective, the higher the capital, the better.

On our test to measure capital adequacy, USALLIANCE received a score of 6 out of a possible 30 points, below the national average of 15.26.

USALLIANCE's capitalization ratio of 8.00 percent in our test was below the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

Asset Quality Score

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

A credit union with lots of these types of assets may eventually be forced to use capital to cover losses, cutting down on 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, decreasing earnings and elevating the chances of a future failure.

USALLIANCE scored 36 out of a possible 40 points on Bankrate's test of asset quality, lower than the national average of 38.15.

A greater-than-average ratio of problem assets of 8.00 percent in our test was something to keep an eye on for the credit union.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand financial shocks. Losses, on the other hand, diminish a credit union's ability to do those things.

On Bankrate's earnings test, USALLIANCE scored 20 out of a possible 30, exceeding the national average of 10.31.

One sign that USALLIANCE is running ahead of its peers in this area was its earnings ratio of 11.00 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.