Safe and Sound

ALLEGHENY VALLEY

Pittsburgh, PA
4
Star Rating
ALLEGHENY VALLEY is a Pittsburgh, PA-based, NCUA-insured credit union started in 1941. The credit union holds $11.8 million in assets, according to December 31, 2017, regulatory filings.

Members have $2.9 million on deposit tended by 3 full-time employees. With that footprint, the credit union holds loans and leases worth $2.9 million. ALLEGHENY VALLEY's 1,216 members currently have $8.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ALLEGHENY VALLEY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three major criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an a credit union's financial stability, capital is crucial. From a safety and soundness perspective, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, ALLEGHENY VALLEY scored 30 out of a possible 30 points, beating out the national average of 15.65.

ALLEGHENY VALLEY's capitalization ratio of 30.00 percent in our test was higher than the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as past-due mortgages.

Having extensive holdings of these kinds of assets suggests a credit union could eventually have to use capital to absorb losses, shrinking its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in depressed earnings and potentially more risk of a future failure.

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

A lower-than-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 ability to earn money has an effect on its long-term survivability. Earnings can be retained by the credit union, boosting its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in tough times. Credit unions that are losing money, however, have less ability to do those things.

ALLEGHENY VALLEY scored 0 out of a possible 30 on Bankrate's test of earnings, coming in below the national average of 10.11.

ALLEGHENY VALLEY had an earnings ratio of 0.00 percent in our test, better than 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.