Safe and Sound

ITALO-AMERICAN

GLENDALE, NY
5
Star Rating
GLENDALE, NY-based ITALO-AMERICAN is an NCUA-insured credit union founded in 1935. Regulatory filings show the credit union having assets of $20.5 million, as of December 31, 2017.

With 3 full-time employees, the credit union holds loans and leases worth $15.8 million. Its 558 members currently have $17.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ITALO-AMERICAN exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three key criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of an institution's financial strength. It works as a bulwark against losses and affords protection for members during periods of financial instability for the credit union. When it comes to safety and soundness, the higher the capital, the better.

ITALO-AMERICAN beat out the national average of 15.65 points on our test to measure capital adequacy, scoring 16 out of a possible 30 points.

ITALO-AMERICAN's capitalization ratio of 16.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

This test's purpose is to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid loans.

Having extensive holdings of these types of assets suggests a credit union could eventually have to use capital to absorb losses, decreasing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a failure in the future.

ITALO-AMERICAN scored above the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

ITALO-AMERICAN's ratio of problem assets was 0.00 percent in our test, lower than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance affects its safety and soundness. A credit union can retain its earnings, increasing its capital cushion, or use them to address problematic loans, potentially making the credit union more resilient in tough times. However, credit unions that are losing money are less able to do those things.

ITALO-AMERICAN did above-average on Bankrate's earnings test, achieving a score of 20 out of a possible 30.

ITALO-AMERICAN had an earnings ratio of 0.00 percent in our test, better than 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.