Safe and Sound

DISTRICT #6

HORNELL, NY
2
Star Rating
DISTRICT #6 is an NCUA-insured credit union started in 1936 and currently headquartered in HORNELL, NY. Regulatory filings show the credit union having assets of $17.6 million, as of December 31, 2017.

With 5 full-time employees, the credit union holds loans and leases worth $9.0 million. Its 1,778 members currently have $15.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, DISTRICT #6 exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three key criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial strength, capital is valuable. When it comes to safety and soundness, the more capital, the better.

On our test to measure capital adequacy, DISTRICT #6 received a score of 8 out of a possible 30 points, falling short of the national average of 15.65.

DISTRICT #6 had a capitalization ratio of 8.00 percent in our test, lower than the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid mortgages.

Having large numbers of these types of assets may eventually require a credit union to use capital to cover losses, reducing its buffer 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, reducing earnings and increasing the chances of a failure in the future.

On Bankrate's test of asset quality, DISTRICT #6 scored 28 out of a possible 40 points, lower than the national average of 38.09 points.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, below the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. A credit union can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand financial trouble. Conversely, losses take away from a credit union's ability to do those things.

On Bankrate's test of earnings, DISTRICT #6 scored 0 out of a possible 30, failing to reach the national average of 10.11.

The credit union 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.