Safe and Sound

ALLIED

ARLINGTON, TX
4
Star Rating
Founded in 1965, ALLIED is an NCUA-insured credit union based in ARLINGTON, TX. Regulatory filings show the credit union having assets of $93.4 million, as of December 31, 2017.

With 28 full-time employees, the credit union has amassed loans and leases worth $44.6 million. ALLIED's 9,693 members currently have $85.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ALLIED exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three important criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members when a credit union is experiencing financial trouble. It follows then that when it comes to measuring an an institution's financial strength, capital is crucial. When it comes to safety and soundness, more capital is better.

ALLIED received a score of 6 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's capitalization ratio of 6.00 percent in our test was lower than the average for all credit unions, suggesting that it's less 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 problem assets, such as past-due mortgages.

A credit union with extensive holdings of these kinds of assets may eventually be required to use capital to absorb losses, decreasing 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 diminished earnings and potentially more risk of a future failure.

ALLIED scored 36 out of a possible 40 points on Bankrate's asset quality test, failing to reach the national average of 38.09.

A below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects its safety and soundness. A credit union can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better able to withstand financial shocks. Conversely, losses diminish a credit union's ability to do those things.

On Bankrate's test of earnings, ALLIED scored 14 out of a possible 30, above the national average of 10.11.

One indication that the credit union is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.