Safe and Sound

ALBION SCHOOL EMPLOYEES

ALBION, NY
4
Star Rating
ALBION SCHOOL EMPLOYEES is an ALBION, NY-based, NCUA-insured credit union that opened its doors in 1963. As of December 31, 2017, the credit union had assets of $2.3 million.

Its 504 members currently have $1.9 million in shares with the credit union. With that footprint, the credit union currently holds loans and leases worth $912,516.

Overall, Bankrate believes that, as of December 31, 2017, ALBION SCHOOL EMPLOYEES 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 works as a buffer against losses and affords protection for members during times of financial instability for the credit union. Therefore, when it comes to measuring an an institution's financial resilience, capital is key. When looking at safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, ALBION SCHOOL EMPLOYEES achieved a score of 26 out of a possible 30 points, exceeding the national average of 15.65.

ALBION SCHOOL EMPLOYEES had a capitalization ratio of 26.00 percent in our test, higher than the average for all credit unions, an indication that it's stronger than its peers.

Asset Quality Score

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

A credit union with a large number of these types of assets may eventually be forced to use capital to absorb losses, shrinking 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 lower earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, ALBION SCHOOL EMPLOYEES scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

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

Earnings score

A credit union's earnings performance has an effect on its long-term survivability. A credit union can retain its earnings, giving a boost to its capital cushion, or put them to work addressing problematic loans, likely making the credit union more resilient in times of trouble. Credit unions that are losing money, however, are less able to do those things.

ALBION SCHOOL EMPLOYEES underperformed the average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's doing better than 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.