Safe and Sound

Sunnyside Federal Savings and Loan Association of Irvington

Irvington, NY
3
Star Rating
Founded in 1929, Sunnyside Federal Savings and Loan Association of Irvington is an FDIC-insured bank based in Irvington, NY. The bank holds equity of $10.6 million on $85.5 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 14 full-time employees, the bank has amassed loans and leases worth $48.8 million, $37.4 million of which are for real estate. U.S. bank customers currently have $73.8 million in deposits with the bank.

Overall, Bankrate believes that, as of December 31, 2017, Sunnyside Federal Savings and Loan Association of Irvington exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a breakdown of how the bank fared on the three key criteria Bankrate used to score American banks.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an an institution's financial fortitude, capital is valuable. It acts as a buffer against losses and affords protection for depositors during times of economic trouble for the bank. When it comes to safety and soundness, the higher the capital, the better.

Sunnyside Federal Savings and Loan Association of Irvington scored above the national average of 13.13 points on our test to measure the adequacy of a bank's capital, racking up 16 out of a possible 30 points.

One way to measure this buffer is looking at a bank's Tier 1 capital ratio. Sunnyside Federal Savings and Loan Association of Irvington's Tier 1 capital ratio was 24.88 percent, higher than the 6 percent level regulators consider adequate, but below the national average of 25.65 percent. The higher the capital ratio, the better the bank will be able to stand up to economic challenges.

Overall, Sunnyside Federal Savings and Loan Association of Irvington held equity amounting to 12.44 percent of its assets, which exceeded the national average of 12.03 percent.

Asset Quality Score

In this test, Bankrate tries to determine the impact of problem assets, such as past-due mortgages, on the bank's capitalization and allocated loan loss reserves.

Having large numbers of these kinds of assets means a bank could eventually have to use capital to cover losses, reducing 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 bank, resulting in diminished earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, Sunnyside Federal Savings and Loan Association of Irvington scored 40 out of a possible 40 points, better than the national average of 37.49 points.

A useful indicator of asset quality is the percentage of problem assets a bank holds compared to its total assets. As of December 31, 2017, 1.30 percent of Sunnyside Federal Savings and Loan Association of Irvington's loans were noncurrent -- in other words, they were more than 90 days past due or were in non-accrual status. That's above the national average of 1.01 percent.

Banks maintain a reserve to deal with problem assets known as an "allowance for loan and lease losses." Comparing how large that reserve is to the total amount of problematic loans can be a useful indicator when evaluating a bank's ability to manage troubled assets. Unfortunately, the FDIC did not provide information on Sunnyside Federal Savings and Loan Association of Irvington's loan loss allowance in its most recent filings.

Earnings score

A bank's profitability affects its safety and soundness. Earnings can be retained by the bank, expanding its capital buffer, or be used to address problematic loans, likely making the bank better prepared to withstand financial trouble. Obviously, banks that are losing money are less able to do those things.

Sunnyside Federal Savings and Loan Association of Irvington scored 0 out of a possible 30 on Bankrate's test of earnings, failing to reach the national average of 15.12.

Return on equity, calculated by dividing net income (essentially, profit) by total equity, is one important way to measure a bank's earnings. Sunnyside Federal Savings and Loan Association of Irvington's most recent annualized quarterly return on equity was -3.13 percent, below the national average of 8.10 percent.

The bank recorded net income of $-339,000 on total equity of $10.6 million for the twelve months ended December 31, 2017. The bank had an annualized return on average assets, or ROA, of -0.38 percent, below the 1 percent deemed satisfactory in accordance with industry standards and below the average for U.S. banks of 1.00 percent.

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.