Safe and Sound

CHEEKTOWAGA COMMUNITY

CHEEKTOWAGA, NY
4
Star Rating
CHEEKTOWAGA, NY-based CHEEKTOWAGA COMMUNITY is an NCUA-insured credit union started in 1959. The credit union has $11.6 million in assets, according to December 31, 2017, regulatory filings.

Members have $8.7 million on deposit tended by 2 full-time employees. With that footprint, the credit union has amassed loans and leases worth $8.7 million. CHEEKTOWAGA COMMUNITY's 1,037 members currently have $10.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CHEEKTOWAGA COMMUNITY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three important criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and affords protection for members when a credit union is struggling financially. Therefore, an institution's level of capital is a useful measurement of its financial fortitude. When it comes to safety and soundness, the higher the capital, the better.

CHEEKTOWAGA COMMUNITY did better than the national average of 15.65 points on our test to measure capital adequacy, achieving a score of 18 out of a possible 30 points.

CHEEKTOWAGA COMMUNITY's capitalization ratio of 18.00 percent in our test was higher than the average for all credit unions, an indication that it's on more solid financial footing than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the effect of problem assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with lots of these kinds of assets could eventually have to use capital to cover losses, cutting down on its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, decreasing earnings and increasing the risk of a failure in the future.

CHEEKTOWAGA COMMUNITY scored below the national average of 38.09 on Bankrate's asset quality test, racking up 32 out of a possible 40 points .

CHEEKTOWAGA COMMUNITY's ratio of problem assets was 0.00 percent in our test, less than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, potentially making the credit union better able to withstand economic trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's test of earnings, CHEEKTOWAGA COMMUNITY scored 6 out of a possible 30, falling short of the national average of 10.11.

CHEEKTOWAGA COMMUNITY had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's beating 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.