Safe and Sound

ALLIED HEALTHCARE

Long Beach, CA
4
Star Rating
Long Beach, CA-based ALLIED HEALTHCARE is an NCUA-insured credit union founded in 1956. The credit union has assets of $69.5 million, according to December 31, 2017, regulatory filings.

Members have $52.3 million on deposit tended by 15 full-time employees. With that footprint, the credit union currently holds loans and leases worth $52.3 million. Its 5,966 members currently have $63.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ALLIED HEALTHCARE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is useful. 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, more capital is preferred.

ALLIED HEALTHCARE received a score of 8 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, less than the national average of 15.65.

ALLIED HEALTHCARE had a capitalization ratio of 8.00 percent in our test, less than the average for all credit unions, a sign that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

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

A credit union with extensive holdings of these kinds of assets could eventually be required to use capital to absorb losses, cutting down on its equity buffer. 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, reducing earnings and increasing the chances of a future failure.

On Bankrate's asset quality test, ALLIED HEALTHCARE scored 40 out of a possible 40 points, beating out the national average of 38.09 points.

ALLIED HEALTHCARE's ratio of troubled assets was 0.00 percent in our test, less than the national average and suggestive 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. Earnings can be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses reduce a credit union's ability to do those things.

ALLIED HEALTHCARE exceeded the national average on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.

ALLIED HEALTHCARE had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication that it's outperforming 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.