Safe and Sound

1199 SEIU

New York, NY
3
Star Rating
1199 SEIU is an NCUA-insured credit union started in 1940 and currently based in New York, NY. The credit union holds $68.5 million in assets, according to June 30, 2017, regulatory filings.

Thanks to the efforts of 17 full-time employees, the credit union has amassed loans and leases worth $22.0 million. 1199 SEIU's 27,245 members currently have $63.0 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, 1199 SEIU exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for members when a credit union is experiencing economic trouble. It follows then that an institution's level of capital is an essential measurement of its financial fortitude. From a safety and soundness perspective, the higher the capital, the better.

1199 SEIU received a score of 6 out of a possible 30 points on our test to measure capital adequacy, failing to reach the national average of 15.26.

1199 SEIU had a capitalization ratio of 8.00 percent in our test, worse than the average for all credit unions, a sign that it could be less resilient in a crisis than its peers.

Asset Quality Score

This test is intended to estimate 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 mortgages.

Having a large number of these kinds of assets means a credit union may eventually have to use capital to absorb losses, diminishing 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, reducing earnings and increasing the chances of a failure in the future.

1199 SEIU scored 36 out of a possible 40 points on Bankrate's asset quality test, failing to reach the national average of 38.15.

Troubled assets made up 12.00 percent of 1199 SEIU's total assets in our test, above the national average and something to watch.

Earnings score

How successful a credit union is at making money affects its long-term survivability. Earnings can be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, likely making the credit union better able to withstand economic trouble. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's test of earnings, 1199 SEIU scored 6 out of a possible 30, falling short of the national average of 10.31.

One sign that 1199 SEIU is beating its peers in this area was its earnings ratio of 3.00 percent in our test, above 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.