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Advancial About 200 Million

bboy
  |     |   8 posts since 2019

Advancial Credit Union has about $200 million more loaned out than they have in deposits. Is anybody concerned about this kind of thing? Don't they have to borrow to cover that deficit? They recently cut their hours as well. I'm wondering if they're having a hard time. I remember their rates were still low when everyone else was raising theirs. It looks like they might have waited a little too late to start offering decent rates and they lost too many depositors? In the second quarter, they were 300 million more loaned out than they had deposits, so for the third quarter it's gotten a little better, but still makes me concerned. Any opinions out there? Would you put money there knowing this? Thanks.

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Answers
txFish1
  |     |   476 posts since 2023
Advancial cut their hours on January 1st. About half of their branches were open until 6pm and the other half were open until 5pm. They are now all uniform and close at 5pm. The branches that were originally open on Saturdays are still open on Saturdays. Always keep your deposits under NCUA/FDIC limits.
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CDmanFL
  |     |   286 posts since 2019
Friends,
bboy raises a very serious and legitimate concern. A lot of us here have big bucks in Advancial. Our little DA community probably has tens of millions on deposit there. Yes, we have NCUA backing us but the allure of Advancial is being able to lock into these fabulous long-term rates. How concerned is everyone? This comment about them cutting their hours is news to me. That in and of itself sounds serious and concerning. I’m rooting for them and hope this is just a minor bump in the road.
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Kaight
  |     |   1,192 posts since 2011
Are you thinkin' possible Tobyhanna/Valor redux?
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CDmanFL
  |     |   286 posts since 2019
Kaight, please elaborate as I’m not familiar with your question.
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Kaight
  |     |   1,192 posts since 2011
Tobyhanna, later renamed Valor, was a high flying credit union about ten years (plus or minus) back, much discussed here on Ken's site. The president of that credit union lost his job and went to jail. The credit union itself collapsed and was absorbed into PenFed.

But despite all the hubbub, Tobyhanna/Valor was a nice money maker for many participants here, including myself. I'm not a player at Advancial. But provided one remains inside the allowed NCUA insurance limits, I see no problem there. . . . . . just opportunity.
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Sanger
  |     |   321 posts since 2022
Thanks for that Kaight I thought he was talking about Star Wars .
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sams1985
  |     |   781 posts since 2022
If they keep that rate past Jan 31st, I'd definitely be even more concerned...too late now, I went all in. What a world we live in where we can't even sleep at night locking in a historically mediocre fixed income rate.

Ken has them at a "B" which is respectable and Bauer has them rated as 4 stars (excellent) but i dont know how they came to those conclusions. If anyone has a subscription to Bauer maybe they can post some more information.
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CDmanFL
  |     |   286 posts since 2019
Yes Sams, I'm all in too. Let's put our collective prayers together and hope for the best.
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me1004
  |     |   1,379 posts since 2010
Now you know why the CD rates are high.

It definitely raises questions about the longterm, locking in all these high rates (in today's market) for five years.
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njs
  |     |   71 posts since 2019
I attempted the online application prior to reading these comments. It would not add my ss# or upload the back of my license as others have reported. You can download the application(from the non us citizen link). It's not fillable but can be printed then snail mailed to them. I jumped at one of these rates in 2007 then the bank failed. Thankfully PNC assumed them and honored the 60 month term and rate. So I think I'll wait a bit.
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Ltssharon
  |     |   471 posts since 2020
I had your same experience of the back of driver's license not downloading and also now find you have to , after getting a regular savings, then get and snail mail in an ira savings account if you want an ira with the good cd rates. Also my experience: Also, they do not accept trust accounts if anyone is thinking of trying that or of using a trust as a beneficiary.
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John19
  |     |   394 posts since 2022
Probably why their rate is so oddly high at 5.4%. That alone is cause for concern. I guarantee everyone will get paid though. GTE worked out well with the penalty being waived after their little stunt.
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bboy
  |     |   8 posts since 2019
Ncua would pay us, but if the rates have dropped in the meantime, we lose the income from the CD.
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Kaight
  |     |   1,192 posts since 2011
Weiss Ratings has recently dropped the Advancial health rating from "B" to "C".

A "B" rating at Weiss is not at all a bad rating, and even "C" is not horrible. However, Weiss is saying that Advancial's current liquidity is quite low, with profitability not very much higher.

https://weissratings.com/en/credit-union/28/summary
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milty
  |     |   1,672 posts since 2018
This is from November. Wonder how their liquidity looks now? I would guess that their CD rates have been driving a ton of deposits their way.
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CDmanFL
  |     |   286 posts since 2019
They probably raised tens of millions in deposits in the past 2 months. I suppose that’s a good thing provided they are making high quality loans in excess of the CD rates.
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1schex
  |     |   7 posts since 2017
Well I've been with them for a while with a office 30 miles away in Lafayette. They have always had very good CD rates. I am all in literally closing big CDs with all-in and GTE to keep them close to home, but lets hope the rating slowly improves because 5 years can be a lifetime in this environment.
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