Safe and Sound

AMERICHOICE

Mechanicsburg, PA
3
Star Rating
Started in 1970, AMERICHOICE is an NCUA-insured credit union based in Mechanicsburg, PA. Regulatory filings show the credit union having $175.9 million in assets, as of December 31, 2017.

With 57 full-time employees, the credit union currently holds loans and leases worth $111.7 million. AMERICHOICE's 14,483 members currently have $161.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, AMERICHOICE exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three major criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and as protection for members during periods of economic trouble for the credit union. Therefore, a credit union's level of capital is an essential measurement of its financial fortitude. When looking at safety and soundness, more capital is preferred.

On our test to measure capital adequacy, AMERICHOICE received a score of 6 out of a possible 30 points, below the national average of 15.65.

AMERICHOICE had a capitalization ratio of 6.00 percent in our test, worse than the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

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

A credit union with a large number of these types of assets may eventually have 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 lower earnings and potentially more risk of a future failure.

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

AMERICHOICE'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 may be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, potentially making the credit union better able to withstand economic trouble. Conversely, losses reduce a credit union's ability to do those things.

AMERICHOICE underperformed the average on Bankrate's earnings test, achieving a score of 6 out of a possible 30.

One indication that AMERICHOICE 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.