Safe and Sound

AFGM ENTERPRISES

CHEEKTOWAGA, NY
5
Star Rating
AFGM ENTERPRISES is an NCUA-insured credit union started in 1963 and currently headquartered in CHEEKTOWAGA, NY. As of December 31, 2017, the credit union held assets of $11.7 million.

With 2 full-time employees, the credit union has amassed loans and leases worth $7.1 million. AFGM ENTERPRISES's 1,330 members currently have $9.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, AFGM ENTERPRISES exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three key criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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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 trouble. Therefore, a credit union's level of capital is a valuable measurement of its financial strength. When looking at safety and soundness, the higher the capital, the better.

AFGM ENTERPRISES scored 30 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, exceeding the national average of 15.65.

AFGM ENTERPRISES appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 30.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

This test is intended to estimate how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as unpaid loans.

Having large numbers of these types of assets suggests a credit union could have to use capital to absorb losses, reducing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, diminishing earnings and elevating the risk of a future failure.

AFGM ENTERPRISES exceeded the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance affects its long-term survivability. Earnings may be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, potentially making the credit union better prepared to withstand economic shocks. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's earnings test, AFGM ENTERPRISES scored 2 out of a possible 30, below the national average of 10.11.

AFGM ENTERPRISES had an earnings ratio of 0.00 percent in our test, above 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.