Safe and Sound

SUFFOLK

MEDFORD, NY
4
Star Rating
MEDFORD, NY-based SUFFOLK is an NCUA-insured credit union founded in 1967. As of June 30, 2017, the credit union held assets of $1.08 billion.

With 140 full-time employees, the credit union holds loans and leases worth $635.2 million. Its 57,981 members currently have $938.0 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, SUFFOLK 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 key criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an a credit union's financial fortitude, capital is useful. When it comes to safety and soundness, the higher the capital, the better.

SUFFOLK received a score of 8 out of a possible 30 points on our test to measure capital adequacy, less than the national average of 15.26.

SUFFOLK's capitalization ratio of 9.00 percent in our test was below the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid loans.

Having extensive holdings of these types of assets suggests a credit union may eventually have to use capital to absorb losses, shrinking its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a failure in the future.

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

Troubled assets made up 4.00 percent of SUFFOLK's total assets in our test, below the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance affects its safety and soundness. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Losses, on the other hand, lessen a credit union's ability to do those things.

On Bankrate's earnings test, SUFFOLK scored 8 out of a possible 30, failing to reach the national average of 10.31.

SUFFOLK had an earnings ratio of 3.00 percent in our test, higher than the average for all credit unions, a sign 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.