Safe and Sound

ALLEGANY FIRST

FILLMORE, NY
3
Star Rating
FILLMORE, NY-based ALLEGANY FIRST is an NCUA-insured credit union founded in 1977. The credit union has assets of $14.6 million, according to December 31, 2017, regulatory filings.

Members have $5.9 million on deposit tended by 4 full-time employees. With that footprint, the credit union has amassed loans and leases worth $5.9 million. Its 2,111 members currently have $13.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ALLEGANY FIRST exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three important criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of a credit union's financial fortitude. It works as a buffer against losses and as protection for members during periods of economic instability for the credit union. When looking at safety and soundness, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, ALLEGANY FIRST received a score of 10 out of a possible 30 points, less than the national average of 15.65.

ALLEGANY FIRST's capitalization ratio of 10.00 percent in our test was below the average for all credit unions, a sign that it's weaker than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the impact of troubled assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.

A credit union with large numbers of these kinds of assets could eventually have to use capital to cover losses, decreasing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in diminished earnings and potentially more risk of a failure in the future.

ALLEGANY FIRST scored 40 out of a possible 40 points on Bankrate's asset quality test, beating the national average of 38.09.

A below-average ratio of troubled 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 profitability has an effect on its long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to address problematic loans, potentially making the credit union better prepared to withstand financial shocks. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, ALLEGANY FIRST scored 4 out of a possible 30, lower than the national average of 10.11.

ALLEGANY FIRST 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.