Safe and Sound

QUORUM

PURCHASE, NY
2
Star Rating
PURCHASE, NY-based QUORUM is an NCUA-insured credit union founded in 1977. Regulatory filings show the credit union having assets of $874.1 million, as of June 30, 2017.

With 115 full-time employees, the credit union currently holds loans and leases worth $736.6 million. QUORUM's 81,951 members currently have $780.7 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, QUORUM exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three key criteria Bankrate used to score American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of an institution's financial resilience. It works as a cushion against losses and affords protection for members when a credit union is experiencing financial trouble. When looking at safety and soundness, more capital is better.

On our test to measure capital adequacy, QUORUM received a score of 6 out of a possible 30 points, coming in below the national average of 15.26.

QUORUM's capitalization ratio of 7.00 percent in our test was below the average for all credit unions, a sign that it's weaker than its peers.

Asset Quality Score

Bankrate uses this test to estimate the impact of troubled assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

A credit union with extensive holdings of these kinds of assets may eventually be required to use capital to absorb losses, shrinking 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, diminishing earnings and elevating the chances of a failure in the future.

QUORUM scored 12 out of a possible 40 points on Bankrate's test of asset quality, coming in below the national average of 38.15.

Troubled assets made up 54.00 percent of QUORUM's total assets in our test, above the national average and a potential cause for concern.

Earnings score

A credit union's profitability has an effect on its long-term survivability. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, potentially making the credit union more resilient in tough times. However, credit unions that are losing money have less ability to do those things.

QUORUM scored 18 out of a possible 30 on Bankrate's test of earnings, exceeding the national average of 10.31.

The credit union had an earnings ratio of 9.00 percent in our test, higher than the average for all credit unions, a sign that it's outperforming 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.