Safe and Sound

BAY RIDGE

BROOKLYN, NY
NR
Star Rating
Founded in 1934, BAY RIDGE is an NCUA-insured credit union headquartered in BROOKLYN, NY. Regulatory filings show the credit union having $192.8 million in assets, as of December 31, 2017.

Members have $171.7 million on deposit tended by 28 full-time employees. With that footprint, the credit union currently holds loans and leases worth $171.7 million. BAY RIDGE's 8,290 members currently have $166.8 million in shares with the credit union.

Overall, Bankrate did not have enough information on this institution to give it a star rating. Here's an analysis of how the credit union did on the three important criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and as protection for members when a credit union is experiencing financial trouble. Therefore, an institution's level of capital is an important measurement of its financial fortitude. When looking at safety and soundness, more capital is better.

On our test to measure capital adequacy, BAY RIDGE received a score of 6 out of a possible 30 points, coming in below the national average of 15.65.

BAY RIDGE's capitalization ratio of 6.00 percent in our test was less than the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

Asset Quality Score

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

Having a large number of these kinds of assets means a credit union may have to use capital to absorb losses, cutting down on its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in diminished earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, BAY RIDGE scored 16 out of a possible 40 points, less than the national average of 38.09 points.

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its long-term survivability. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the credit union better prepared to withstand economic trouble. However, credit unions that are losing money are less able to do those things.

BAY RIDGE scored 0 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 10.11.

BAY RIDGE had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting 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.