Safe and Sound

G.P.O.

NEW HARTFORD, NY
4
Star Rating
G.P.O. is an NCUA-insured credit union started in 1978 and currently headquartered in NEW HARTFORD, NY. Regulatory filings show the credit union having $255.3 million in assets, as of June 30, 2017.

Members have $166.2 million on deposit tended by 66 full-time employees. With that footprint, the credit union has amassed loans and leases worth $166.2 million. Its 29,992 members currently have $229.0 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, G.P.O. exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three important criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial resilience, capital is crucial. It works as a bulwark against losses and affords protection for members when a credit union is experiencing economic trouble. From a safety and soundness perspective, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, G.P.O. received a score of 10 out of a possible 30 points, less than the national average of 15.26.

G.P.O. appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 9.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

This test's purpose is 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 unpaid mortgages.

A credit union with large numbers of these kinds of assets may eventually be forced to use capital to absorb losses, shrinking 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 interest for the credit union, decreasing earnings and elevating the chances of a future failure.

On Bankrate's test of asset quality, G.P.O. scored 28 out of a possible 40 points, below the national average of 38.15 points.

An above-average ratio of problem assets of 26.00 percent in our test was a potential cause for concern for G.P.O..

Earnings score

A credit union's earnings performance affects its long-term survivability. Earnings can be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, likely making the credit union better able to withstand financial shocks. However, credit unions that are losing money are less able to do those things.

G.P.O. did above-average on Bankrate's earnings test, achieving a score of 18 out of a possible 30.

One sign that the credit union is outperforming its peers in this area was its earnings ratio of 9.00 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.