Safe and Sound

HEALTH EMPLOYEES

ALBANY, NY
4
Star Rating
HEALTH EMPLOYEES is an NCUA-insured credit union started in 1975 and currently headquartered in ALBANY, NY. The credit union has $32.4 million in assets, according to December 31, 2017, regulatory filings.

With 6 full-time employees, the credit union holds loans and leases worth $10.5 million. Its 3,873 members currently have $27.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HEALTH EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three major criteria Bankrate used to score U.S. 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 when a credit union is experiencing economic instability. It follows then that an institution's level of capital is an important measurement of its financial resilience. From a safety and soundness perspective, more capital is better.

On our test to measure capital adequacy, HEALTH EMPLOYEES racked up 22 out of a possible 30 points, better than the national average of 15.65.

HEALTH EMPLOYEES's capitalization ratio of 22.00 percent in our test was above the average for all credit unions, suggesting 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 loan loss reserves and overall capitalization could be affected by problem assets, such as past-due loans.

A credit union with extensive holdings of these types of assets may eventually be required to use capital to absorb losses, reducing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, decreasing earnings and elevating the risk of a failure in the future.

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

The credit union's ratio of problem assets was 0.00 percent in our test, less than 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 can be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, potentially making the credit union better prepared to withstand financial shocks. Conversely, losses diminish a credit union's ability to do those things.

HEALTH EMPLOYEES received below-average marks on Bankrate's earnings test, achieving a score of 2 out of a possible 30.

HEALTH EMPLOYEES had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign that it's beating 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.