Safe and Sound

HUDSON RIVER FINANCIAL

MOHEGAN LAKE, NY
4
Star Rating
MOHEGAN LAKE, NY-based HUDSON RIVER FINANCIAL is an NCUA-insured credit union started in 1938. Regulatory filings show the credit union having $54.2 million in assets, as of December 31, 2017.

With 9 full-time employees, the credit union currently holds loans and leases worth $20.6 million. HUDSON RIVER FINANCIAL's 6,026 members currently have $49.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HUDSON RIVER FINANCIAL 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 important criteria Bankrate used to score American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members during periods of economic instability for the credit union. Therefore, a credit union's level of capital is a valuable measurement of its financial resilience. When looking at safety and soundness, the higher the capital, the better.

HUDSON RIVER FINANCIAL fell below the national average of 15.65 on our test to measure capital adequacy, achieving a score of 6 out of a possible 30 points.

HUDSON RIVER FINANCIAL's capitalization ratio of 6.00 percent in our test was less than the average for all credit unions, a sign that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

This test is intended to try to understand 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 unpaid loans.

A credit union with extensive holdings of these kinds of assets could eventually have to use capital to cover losses, cutting down on its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, reducing earnings and increasing the risk of a future failure.

HUDSON RIVER FINANCIAL beat out the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 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

How successful a credit union is at making money affects its long-term survivability. Earnings may be retained by the credit union, giving a boost to its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's earnings test, HUDSON RIVER FINANCIAL scored 10 out of a possible 30, lower than the national average of 10.11.

HUDSON RIVER FINANCIAL had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign that it's outperforming 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.