Safe and Sound

INTER-AMERICAN

BROOKLYN, NY
3
Star Rating
INTER-AMERICAN is an NCUA-insured credit union founded in 1964 and currently based in BROOKLYN, NY. The credit union has assets of $843,533, according to December 31, 2017, regulatory filings.

Its 650 members currently have $730,502 in shares with the credit union. With that footprint, the credit union currently holds loans and leases worth $121,669.

Overall, Bankrate believes that, as of December 31, 2017, INTER-AMERICAN exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three major criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of an institution's financial fortitude. It works as a bulwark against losses and affords protection for members during periods of economic instability for the credit union. When looking at safety and soundness, the more capital, the better.

INTER-AMERICAN fell short of the national average of 15.65 on our test to measure capital adequacy, receiving a score of 14 out of a possible 30 points.

INTER-AMERICAN's capitalization ratio of 14.00 percent in our test was lower 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

In this test, Bankrate tries to determine the effect of problem assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with extensive holdings of these types of assets could eventually be forced 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 thus aren't earning interest for the credit union, diminishing earnings and increasing the risk of a future failure.

On Bankrate's test of asset quality, INTER-AMERICAN scored 28 out of a possible 40 points, less than the national average of 38.09 points.

The credit union's ratio of troubled assets was 0.00 percent in our test, beneath the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses lessen a credit union's ability to do those things.

INTER-AMERICAN scored 10 out of a possible 30 on Bankrate's test of earnings, failing to reach the national average of 10.11.

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