Safe and Sound

ISLAND

HAUPPAUGE, NY
4
Star Rating
Started in 1955, ISLAND is an NCUA-insured credit union based in HAUPPAUGE, NY. Regulatory filings show the credit union having assets of $1.32 billion, as of June 30, 2017.

With 103 full-time employees, the credit union currently holds loans and leases worth $645.7 million. ISLAND's 37,266 members currently have $1.00 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, ISLAND exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for members during periods of financial trouble for the credit union. Therefore, an institution's level of capital is an important measurement of its financial strength. When looking at safety and soundness, more capital is better.

ISLAND scored below the national average of 15.26 on our test to measure the adequacy of a credit union's capital, scoring 6 out of a possible 30 points.

ISLAND appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 7.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to estimate the impact of problem assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with extensive holdings of these kinds of assets may eventually be forced to use capital to absorb losses, cutting down on its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, diminishing earnings and increasing the chances of a future failure.

On Bankrate's test of asset quality, ISLAND scored 40 out of a possible 40 points, above the national average of 38.15 points.

Troubled assets made up 3.00 percent of ISLAND's total assets in our test, below the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its long-term survivability. Earnings may be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, potentially making the credit union better prepared to withstand financial trouble. Losses, on the other hand, lessen a credit union's ability to do those things.

ISLAND received above-average marks on Bankrate's earnings test, achieving a score of 12 out of a possible 30.

ISLAND had an earnings ratio of 5.00 percent in our test, higher than the average for all credit unions, suggesting that it's running ahead of 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.