Safe and Sound

NASSAU EDUCATORS

Westbury, NY
4
Star Rating
Started in 1938, NASSAU EDUCATORS is an NCUA-insured credit union headquartered in Westbury, NY. The credit union has assets of $2.79 billion, according to June 30, 2017, regulatory filings.

With 327 full-time employees, the credit union currently holds loans and leases worth $2.14 billion. Its 175,572 members currently have $2.50 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, NASSAU EDUCATORS 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 key criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and provides protection for members when a credit union is struggling financially. It follows then that an institution's level of capital is a crucial measurement of its financial resilience. When it comes to safety and soundness, the more capital, the better.

NASSAU EDUCATORS fell below the national average of 15.26 on our test to measure capital adequacy, racking up 10 out of a possible 30 points.

NASSAU EDUCATORS had a capitalization ratio of 9.00 percent in our test, less than the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having large numbers of these kinds of assets could eventually force a credit union to use capital to cover losses, cutting down on 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 interest for the credit union, resulting in depressed earnings and potentially more risk of a future failure.

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

A below-average ratio of troubled assets of 6.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance affects its long-term survivability. Earnings may be retained by the credit union, boosting its capital cushion, or be used to deal with problematic loans, likely making the credit union better prepared to withstand financial shocks. Losses, on the other hand, reduce a credit union's ability to do those things.

NASSAU EDUCATORS received above-average marks on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.

One sign that NASSAU EDUCATORS is running ahead of its peers in this area was its earnings ratio of 8.00 percent in our test, higher than 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.