Safe and Sound

TROY

TROY, NY
4
Star Rating
TROY is an NCUA-insured credit union started in 1963 and currently headquartered in TROY, NY. The credit union holds $2.8 million in assets, according to December 31, 2017, regulatory filings.

TROY's 490 members currently have $2.4 million in shares with the credit union. With that footprint, the credit union has amassed loans and leases worth $1.4 million.

Overall, Bankrate believes that, as of December 31, 2017, TROY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three key criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and as protection for members when a credit union is experiencing financial instability. Therefore, a credit union's level of capital is a valuable measurement of its financial strength. When looking at safety and soundness, more capital is better.

On our test to measure the adequacy of a credit union's capital, TROY racked up 20 out of a possible 30 points, exceeding the national average of 15.65.

TROY's capitalization ratio of 20.00 percent in our test was better than the average for all credit unions, an indication that it's on more solid financial footing than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of problem assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.

Having lots of these types of assets may eventually force a credit union to use capital to cover losses, cutting down on its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, diminishing earnings and elevating the chances of a future failure.

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

Earnings score

How successful a credit union is at making money affects its long-term survivability. Earnings may be retained by the credit union, boosting its capital cushion, or be used to deal with problematic loans, potentially making the credit union better able to withstand economic trouble. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's earnings test, TROY scored 8 out of a possible 30, less than the national average of 10.11.

One sign that the credit union is beating its peers in this area was its earnings ratio of 0.00 percent in our test, higher than the average for all credit unions.

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.