Safe and Sound

BAY RIDGE

BROOKLYN, NY
2
Star Rating
BROOKLYN, NY-based BAY RIDGE is an NCUA-insured credit union started in 1934. Regulatory filings show the credit union having $200.0 million in assets, as of June 30, 2017.

Thanks to the efforts of 35 full-time employees, the credit union currently holds loans and leases worth $176.3 million. Its 8,139 members currently have $172.1 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, BAY RIDGE exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three major criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of a credit union's financial fortitude. It acts as a bulwark against losses and provides protection for members during times of economic instability for the credit union. From a safety and soundness perspective, the more capital, the better.

BAY RIDGE received a score of 8 out of a possible 30 points on our test to measure capital adequacy, falling short of the national average of 15.26.

BAY RIDGE's capitalization ratio of 8.00 percent in our test was worse than the average for all credit unions, suggesting that it could have a harder time weathering financial trouble 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 troubled assets, such as past-due mortgages.

Having extensive holdings of these types of assets suggests a credit union may have to use capital to cover losses, decreasing 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 money, decreasing earnings and increasing the risk of a failure in the future.

On Bankrate's asset quality test, BAY RIDGE scored 24 out of a possible 40 points, below the national average of 38.15 points.

The credit union's ratio of troubled assets was 35.00 percent in our test, greater than the national average and a potential area of concern.

Earnings score

A credit union's earnings performance has an effect on its safety and soundness. Earnings may be retained by the credit union, expanding its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, reduce a credit union's ability to do those things.

BAY RIDGE scored 0 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 10.31.

BAY RIDGE had an earnings ratio of -26.00 percent in our test, lower than the average for all credit unions, suggesting that it's lagging behind 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.