Safe and Sound

DIRECTORS CHOICE

ALBANY, NY
5
Star Rating
ALBANY, NY-based DIRECTORS CHOICE is an NCUA-insured credit union started in 1999. Regulatory filings show the credit union having assets of $9.6 million, as of December 31, 2017.

With 3 full-time employees, the credit union holds loans and leases worth $6.3 million. DIRECTORS CHOICE's 822 members currently have $7.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, DIRECTORS CHOICE exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major criteria Bankrate used to evaluate American credit unions on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial stability, capital is essential. It acts as a bulwark against losses and provides protection for members during periods of economic instability for the credit union. When it comes to safety and soundness, the more capital, the better.

DIRECTORS CHOICE beat out the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, receiving a score of 20 out of a possible 30 points.

DIRECTORS CHOICE had a capitalization ratio of 20.00 percent in our test, above the average for all credit unions, an indication that it's more well prepared for financial trouble 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 troubled assets, such as past-due loans.

Having extensive holdings of these types of assets may eventually require a credit union to use capital to cover losses, decreasing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a failure in the future.

DIRECTORS CHOICE fell short of the national average of 38.09 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

DIRECTORS CHOICE's ratio of problem 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 ability to earn money affects its safety and soundness. Earnings can be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, likely making the credit union more resilient in times of trouble. Conversely, losses reduce a credit union's ability to do those things.

DIRECTORS CHOICE scored 18 out of a possible 30 on Bankrate's test of earnings, above the national average of 10.11.

DIRECTORS CHOICE had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign 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.