Safe and Sound

ALLEN HOSPITAL PERSONNEL

WATERLOO, IA
4
Star Rating
Started in 1961, ALLEN HOSPITAL PERSONNEL is an NCUA-insured credit union headquartered in WATERLOO, IA. As of December 31, 2017, the credit union had assets of $5.5 million.

With 3 full-time employees, the credit union holds loans and leases worth $4.3 million. Its 1,625 members currently have $4.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ALLEN HOSPITAL PERSONNEL exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three major 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 provides protection for members when a credit union is experiencing economic trouble. It follows then that when it comes to measuring an an institution's financial resilience, capital is essential. When it comes to safety and soundness, the more capital, the better.

ALLEN HOSPITAL PERSONNEL racked up 28 out of a possible 30 points on our test to measure capital adequacy, above the national average of 15.65.

ALLEN HOSPITAL PERSONNEL appears to be more resilient than its peers, with a capitalization ratio of 28.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

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

Having a large number of these kinds of assets could eventually force a credit union to use capital to cover losses, reducing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

ALLEN HOSPITAL PERSONNEL did better than the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

The credit union's ratio of troubled assets was 0.00 percent in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. Earnings can be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, potentially making the credit union better able to withstand economic trouble. Losses, on the other hand, diminish a credit union's ability to do those things.

On Bankrate's earnings test, ALLEN HOSPITAL PERSONNEL scored 0 out of a possible 30, coming in below the national average of 10.11.

One sign that the credit union is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, higher than 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.