Safe and Sound

BRANCH 6000 NALC

Amityville, NY
3
Star Rating
Founded in 1973, BRANCH 6000 NALC is an NCUA-insured credit union based in Amityville, NY. The credit union holds assets of $8.9 million, according to December 31, 2017, regulatory filings.

The credit union has amassed loans and leases worth $3.3 million. Its 1,792 members currently have $8.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BRANCH 6000 NALC exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three key criteria Bankrate used to score American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an an institution's financial fortitude, capital is key. When looking at safety and soundness, the more capital, the better.

BRANCH 6000 NALC fell below the national average of 15.65 on our test to measure capital adequacy, scoring 4 out of a possible 30 points.

BRANCH 6000 NALC had a capitalization ratio of 4.00 percent in our test, worse than the average for all credit unions, an indication that it's weaker than its peers.

Asset Quality Score

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

A credit union with a large number of these types of assets could eventually be forced to use capital to cover losses, cutting down on its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, pushing down earnings and elevating the risk of a failure in the future.

BRANCH 6000 NALC scored 32 out of a possible 40 points on Bankrate's asset quality test, falling short of the national average of 38.09.

A below-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 has an effect on its long-term survivability. Earnings can be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, potentially making the credit union better able to withstand economic shocks. Credit unions that are losing money, however, have less ability to do those things.

BRANCH 6000 NALC outperformed the average on Bankrate's earnings test, achieving a score of 14 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's outperforming 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.