Safe and Sound

VISIONS

ENDICOTT, NY
4
Star Rating
Founded in 1966, VISIONS is an NCUA-insured credit union headquartered in ENDICOTT, NY. Regulatory filings show the credit union having $4.06 billion in assets, as of June 30, 2017.

Members have $2.48 billion on deposit tended by 466 full-time employees. With that footprint, the credit union holds loans and leases worth $2.48 billion. Its 186,954 members currently have $3.24 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, VISIONS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three important criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial stability, capital is key. It acts as a buffer against losses and as protection for members when a credit union is experiencing financial instability. When looking at safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, VISIONS received a score of 14 out of a possible 30 points, less than the national average of 15.26.

VISIONS's capitalization ratio of 11.00 percent in our test was less than the average for all credit unions, a sign that it's less well prepared for financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to estimate the effect of troubled assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

Having extensive holdings of these kinds of assets suggests a credit union could eventually have to use capital to cover losses, diminishing 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 interest for the credit union, resulting in diminished earnings and potentially more risk of a future failure.

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

VISIONS's ratio of troubled assets was 6.00 percent in our test, less than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance has an effect on its safety and soundness. Earnings can be retained by the credit union, expanding its capital cushion, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money have less ability to do those things.

VISIONS outperformed the average on Bankrate's test of earnings, achieving a score of 12 out of a possible 30.

One sign that VISIONS is outperforming its peers in this area was its earnings ratio of 6.00 percent in our test, better 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.