Safe and Sound

ALLUS CREDIT UNION

SALINAS, CA
5
Star Rating
ALLUS CREDIT UNION is a SALINAS, CA-based, NCUA-insured credit union founded in 1950. Regulatory filings show the credit union having assets of $43.3 million, as of December 31, 2017.

Thanks to the work of 8 full-time employees, the credit union currently holds loans and leases worth $13.4 million. ALLUS CREDIT UNION's 4,016 members currently have $37.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ALLUS CREDIT UNION exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members when a credit union is experiencing economic trouble. Therefore, a credit union's level of capital is a key measurement of its financial fortitude. From a safety and soundness perspective, the higher the capital, the better.

ALLUS CREDIT UNION scored 18 out of a possible 30 points on our test to measure capital adequacy, better than the national average of 15.65.

ALLUS CREDIT UNION's capitalization ratio of 18.00 percent in our test was higher than the average for all credit unions, suggesting that it's on more solid financial footing than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as past-due loans.

Having a large number of these types of assets means a credit union may 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 thus aren't earning money, diminishing earnings and increasing the chances of a future failure.

On Bankrate's asset quality test, ALLUS CREDIT UNION scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

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

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses reduce a credit union's ability to do those things.

ALLUS CREDIT UNION scored 12 out of a possible 30 on Bankrate's earnings test, exceeding the national average of 10.11.

ALLUS CREDIT UNION had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, an indication that it's doing better than 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.