Safe and Sound

ALLIANCE BLACKSTONE VALLEY

PAWTUCKET, RI
1
Star Rating
ALLIANCE BLACKSTONE VALLEY is a PAWTUCKET, RI-based, NCUA-insured credit union that opened its doors in 1948. Regulatory filings show the credit union having $31.0 million in assets, as of December 31, 2017.

Thanks to the work of 6 full-time employees, the credit union currently holds loans and leases worth $15.1 million. ALLIANCE BLACKSTONE VALLEY's 2,769 members currently have $28.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ALLIANCE BLACKSTONE VALLEY exhibited a significantly below-average condition, earning 1 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three major criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of a credit union's financial resilience. It acts as a bulwark against losses and as protection for members when a credit union is struggling financially. When looking at safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, ALLIANCE BLACKSTONE VALLEY received a score of 6 out of a possible 30 points, falling short of the national average of 15.65.

ALLIANCE BLACKSTONE VALLEY appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 6.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

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

A credit union with extensive holdings of these kinds of assets could eventually be required to use capital to cover losses, cutting down on its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in depressed earnings and potentially more risk of a failure in the future.

ALLIANCE BLACKSTONE VALLEY fell short of the national average of 38.09 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

The credit union's ratio of problem assets was 0.00 percent in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money affects its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, likely making the credit union better prepared to withstand financial shocks. Losses, on the other hand, lessen a credit union's ability to do those things.

ALLIANCE BLACKSTONE VALLEY underperformed the average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

One indication that ALLIANCE BLACKSTONE VALLEY is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.