Safe and Sound

N C P D

Plainview, NY
5
Star Rating
Plainview, NY-based N C P D is an NCUA-insured credit union founded in 1940. As of June 30, 2017, the credit union had assets of $739.0 million.

With 19 full-time employees, the credit union currently holds loans and leases worth $169.8 million. Its 15,558 members currently have $633.6 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, N C P D exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three key criteria Bankrate used to grade American credit unions on safety and soundness.

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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 useful. It works as a cushion against losses and provides protection for members during periods of economic instability for the credit union. When it comes to safety and soundness, the higher the capital, the better.

N C P D scored above the national average of 15.26 points on our test to measure capital adequacy, scoring 18 out of a possible 30 points.

N C P D had a capitalization ratio of 14.00 percent in our test, higher than the average for all credit unions, an indication that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as past-due mortgages.

Having extensive holdings of these types of assets may eventually force a credit union to use capital to absorb losses, diminishing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, reducing earnings and increasing the chances of a future failure.

N C P D beat out the national average of 38.15 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

The credit union's ratio of problem assets was 3.00 percent in our test, less than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. Credit unions that are losing money, however, are less able to do those things.

N C P D outperformed the average on Bankrate's test of earnings, achieving a score of 14 out of a possible 30.

The credit union had an earnings ratio of 7.00 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.