Safe and Sound

HUDSON VALLEY

POUGHKEEPSIE, NY
5
Star Rating
Founded in 1963, HUDSON VALLEY is an NCUA-insured credit union based in POUGHKEEPSIE, NY. As of December 31, 2017, the credit union had assets of $4.68 billion.

Thanks to the work of 704 full-time employees, the credit union holds loans and leases worth $2.75 billion. HUDSON VALLEY's 283,433 members currently have $3.94 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HUDSON VALLEY exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members when a credit union is experiencing economic instability. Therefore, when it comes to measuring an a credit union's financial strength, capital is important. From a safety and soundness perspective, the higher the capital, the better.

HUDSON VALLEY received a score of 12 out of a possible 30 points on our test to measure capital adequacy, failing to reach the national average of 15.65.

HUDSON VALLEY's capitalization ratio of 12.00 percent in our test was less than the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

This test's purpose is 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 past-due loans.

A credit union with extensive holdings of these kinds of assets could eventually have to use capital to cover losses, diminishing its equity buffer. 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 VALLEY scored 40 out of a possible 40 points on Bankrate's asset quality test, above the national average of 38.09.

The credit union'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 earnings performance has an effect on its long-term survivability. Earnings may be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, likely making the credit union better prepared to withstand economic trouble. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's earnings test, HUDSON VALLEY scored 18 out of a possible 30, beating the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting 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.