Safe and Sound

BROOKLYN COOPERATIVE

Brooklyn, NY
2
Star Rating
BROOKLYN COOPERATIVE is an NCUA-insured credit union founded in 2000 and currently headquartered in Brooklyn, NY. The credit union has assets of $23.4 million, according to December 31, 2017, regulatory filings.

Members have $16.8 million on deposit tended by 16 full-time employees. With that footprint, the credit union holds loans and leases worth $16.8 million. Its 6,782 members currently have $19.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BROOKLYN COOPERATIVE exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three major criteria Bankrate used to score American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is key. It acts as a cushion against losses and affords protection for members during times of economic trouble for the credit union. When looking at safety and soundness, the higher the capital, the better.

BROOKLYN COOPERATIVE finished below the national average of 15.65 on our test to measure capital adequacy, achieving a score of 6 out of a possible 30 points.

BROOKLYN COOPERATIVE appears to be weaker than its peers in this area, with a capitalization ratio of 6.00 percent in our test, below the average for all credit unions.

Asset Quality Score

This test's purpose is to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as past-due loans.

A credit union with large numbers of these types of assets may eventually be required to use capital to cover losses, reducing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, diminishing earnings and increasing the chances of a future failure.

BROOKLYN COOPERATIVE scored 24 out of a possible 40 points on Bankrate's test of asset quality, less than the national average of 38.09.

The credit union's ratio of problem assets was 0.00 percent in our test, below the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its long-term survivability. Earnings can be retained by the credit union, giving a boost to its capital cushion, or be used to deal with problematic loans, likely making the credit union better able to withstand economic trouble. Credit unions that are losing money, however, are less able to do those things.

BROOKLYN COOPERATIVE underperformed the average on Bankrate's test of earnings, achieving a score of 2 out of a possible 30.

One sign that the credit union is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, higher than 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.