Safe and Sound

ESL

Rochester, NY
5
Star Rating
ESL is an NCUA-insured credit union started in 1995 and currently based in Rochester, NY. As of June 30, 2017, the credit union held assets of $6.29 billion.

With 611 full-time employees, the credit union holds loans and leases worth $2.60 billion. ESL's 346,962 members currently have $3.22 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, ESL exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union did on the three important criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of an institution's financial resilience. It acts as a buffer against losses and as protection for members during times of economic instability for the credit union. When it comes to safety and soundness, more capital is better.

On our test to measure capital adequacy, ESL scored 22 out of a possible 30 points, beating the national average of 15.26.

ESL appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 16.00 percent in our test, above the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the effect of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having extensive holdings of these kinds of assets means a credit union could eventually have to use capital to cover losses, cutting down on its cushion 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, resulting in reduced earnings and potentially more risk of a failure in the future.

ESL scored 40 out of a possible 40 points on Bankrate's asset quality test, better than the national average of 38.15.

The credit union's ratio of problem assets was 2.00 percent in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, likely making the credit union better able to withstand financial shocks. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's test of earnings, ESL scored 20 out of a possible 30, beating out the national average of 10.31.

The credit union had an earnings ratio of 10.00 percent in our test, above the average for all credit unions, suggesting that it's doing better than 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.