Safe and Sound

BETHPAGE

Bethpage, NY
4
Star Rating
BETHPAGE is a Bethpage, NY-based, NCUA-insured credit union dating back to 1941. The credit union has $7.95 billion in assets, according to December 31, 2017, regulatory filings.

With 580 full-time employees, the credit union has amassed loans and leases worth $5.53 billion. Its 348,415 members currently have $6.67 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BETHPAGE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three major criteria Bankrate used to score U.S. credit unions.

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 stability, capital is crucial. It acts as a cushion against losses and provides protection for members during periods of economic instability for the credit union. From a safety and soundness perspective, the higher the capital, the better.

BETHPAGE finished below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, racking up 4 out of a possible 30 points.

BETHPAGE's capitalization ratio of 4.00 percent in our test was lower than the average for all credit unions, suggesting that it's weaker 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 mortgages.

Having extensive holdings of these kinds of assets could eventually force a credit union to use capital to cover losses, diminishing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in reduced earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, BETHPAGE scored 36 out of a possible 40 points, less 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 greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, potentially making the credit union better able to withstand economic trouble. However, credit unions that are losing money have less ability to do those things.

BETHPAGE scored 16 out of a possible 30 on Bankrate's earnings test, above the national average of 10.11.

One sign that the credit union is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.