Safe and Sound

ASSOCIATED HEALTHCARE

Saint Paul, MN
4
Star Rating
ASSOCIATED HEALTHCARE is a Saint Paul, MN-based, NCUA-insured credit union started in 1953. As of December 31, 2017, the credit union had assets of $112.5 million.

Thanks to the efforts of 31 full-time employees, the credit union has amassed loans and leases worth $72.0 million. Its 13,920 members currently have $101.0 million in shares with the credit union.

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

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and as protection for members when a credit union is experiencing financial trouble. It follows then that an institution's level of capital is a useful measurement of its financial strength. When looking at safety and soundness, more capital is preferred.

ASSOCIATED HEALTHCARE finished below the national average of 15.65 on our test to measure capital adequacy, racking up 10 out of a possible 30 points.

ASSOCIATED HEALTHCARE had a capitalization ratio of 10.00 percent in our test, lower than the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of problem assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with a large number of these kinds of assets could eventually be forced to use capital to cover 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, decreasing earnings and increasing the chances of a future failure.

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

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

Earnings score

A credit union's profitability affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to address problematic loans, potentially making the credit union more resilient in tough times. However, credit unions that are losing money are less able to do those things.

ASSOCIATED HEALTHCARE scored 14 out of a possible 30 on Bankrate's earnings test, above the national average of 10.11.

ASSOCIATED 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 running ahead of 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.