WHAT IS
SAFE AND SOUND?
When it comes to measuring a credit union's financial fortitude, capital is key. It works as a bulwark against losses and affords protection for members when a credit union is experiencing economic instability. From a safety and soundness perspective, the more capital, the better.
On our test to measure the adequacy of a credit union's capital, CORNING received a score of 10 out of a possible 30 points, below the national average of 15.65.
CORNING appears to be weaker than its peers in this area, with a capitalization ratio of 10.00 percent in our test, worse than the average for all credit unions.
In this test, Bankrate tries to estimate the effect of troubled assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.
Having extensive holdings of these types of assets suggests a credit union may eventually have to use capital to absorb losses, reducing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, decreasing earnings and elevating the risk of a future failure.
CORNING scored 40 out of a possible 40 points on Bankrate's asset quality test, beating the national average of 38.09.
Troubled assets made up 0.00 percent of CORNING's total assets in our test, beneath the national average and potentially indicative of superior financial strength compared to other credit unions.
A credit union's earnings performance has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the credit union better prepared to withstand economic shocks. Losses, on the other hand, take away from a credit union's ability to do those things.
CORNING exceeded the national average on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.
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.
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.
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.