Safe and Sound

AFFILIATED TRADES

COLLEGEVILLE, PA
3
Star Rating
Founded in 1974, AFFILIATED TRADES is an NCUA-insured credit union headquartered in COLLEGEVILLE, PA. As of December 31, 2017, the credit union held assets of $29.2 million.

With 3 full-time employees, the credit union currently holds loans and leases worth $10.6 million. Its 1,963 members currently have $25.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, AFFILIATED TRADES exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three important criteria Bankrate used to score 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 as protection for members during periods of economic instability for the credit union. Therefore, when it comes to measuring an an institution's financial strength, capital is valuable. From a safety and soundness perspective, the higher the capital, the better.

AFFILIATED TRADES fell below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, racking up 14 out of a possible 30 points.

AFFILIATED TRADES had a capitalization ratio of 14.00 percent in our test, less than the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

This test's purpose is 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 past-due loans.

Having a large number of these kinds of assets could eventually require a credit union to use capital to absorb losses, cutting down on its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, pushing down earnings and elevating the risk of a failure in the future.

AFFILIATED TRADES scored 36 out of a possible 40 points on Bankrate's test of asset quality, failing to reach the national average of 38.09.

Troubled assets made up 0.00 percent of AFFILIATED TRADES's total assets in our test, beneath the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. 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 prepared to withstand financial shocks. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's earnings test, AFFILIATED TRADES scored 0 out of a possible 30, failing to reach the national average of 10.11.

One sign that the credit union is doing better than its peers in this area was its earnings ratio of 0.00 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.