Safe and Sound

CLARENCE COMMUNITY & SCHOOLS

CLARENCE, NY
4
Star Rating
CLARENCE COMMUNITY & SCHOOLS is an NCUA-insured credit union founded in 1954 and currently based in CLARENCE, NY. The credit union has assets of $22.1 million, according to December 31, 2017, regulatory filings.

Members have $14.0 million on deposit tended by 5 full-time employees. With that footprint, the credit union holds loans and leases worth $14.0 million. Its 2,959 members currently have $20.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CLARENCE COMMUNITY & SCHOOLS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three important criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is valuable. It works as a bulwark against losses and as protection for members when a credit union is experiencing financial trouble. From a safety and soundness perspective, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, CLARENCE COMMUNITY & SCHOOLS received a score of 8 out of a possible 30 points, failing to reach the national average of 15.65.

CLARENCE COMMUNITY & SCHOOLS's capitalization ratio of 8.00 percent in our test was lower than the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the impact of troubled assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having large numbers of these kinds of assets means a credit union may eventually have to use capital to cover losses, reducing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, decreasing earnings and elevating the risk of a failure in the future.

CLARENCE COMMUNITY & SCHOOLS scored 40 out of a possible 40 points on Bankrate's asset quality test, beating out the national average of 38.09.

A below-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, likely making the credit union better prepared to withstand economic shocks. Credit unions that are losing money, however, are less able to do those things.

CLARENCE COMMUNITY & SCHOOLS scored 8 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.11.

One indication that CLARENCE COMMUNITY & SCHOOLS is beating its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.