Safe and Sound

AKRON SCHOOL EMPLOYEES

AKRON, NY
5
Star Rating
Started in 1959, AKRON SCHOOL EMPLOYEES is an NCUA-insured credit union based in AKRON, NY. As of December 31, 2017, the credit union had assets of $876,591.

The credit union currently holds loans and leases worth $590,173. AKRON SCHOOL EMPLOYEES's 219 members currently have $714,601 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, AKRON SCHOOL EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three major criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is essential. It acts as a bulwark against losses and as protection for members during periods of economic trouble for the credit union. When looking at safety and soundness, the more capital, the better.

AKRON SCHOOL EMPLOYEES racked up 28 out of a possible 30 points on our test to measure capital adequacy, better than the national average of 15.65.

AKRON SCHOOL EMPLOYEES had a capitalization ratio of 28.00 percent in our test, higher than the average for all credit unions, an indication that it could be more resilient in a crisis than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with large numbers of these kinds of assets could eventually have 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 no longer earning money, decreasing earnings and elevating the chances of a failure in the future.

On Bankrate's asset quality test, AKRON SCHOOL EMPLOYEES scored 40 out of a possible 40 points, better than the national average of 38.09 points.

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability has an effect on its long-term survivability. Earnings can be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, reduce a credit union's ability to do those things.

On Bankrate's earnings test, AKRON SCHOOL EMPLOYEES scored 14 out of a possible 30, beating the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, a sign that it's running ahead of 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.