Safe and Sound

DIVISION 726

STATEN ISLAND, NY
4
Star Rating
DIVISION 726 is a STATEN ISLAND, NY-based, NCUA-insured credit union founded in 1970. As of December 31, 2017, the credit union had assets of $10.5 million.

DIVISION 726's 2,162 members currently have $8.9 million in shares with the credit union. With that footprint, the credit union has amassed loans and leases worth $7.2 million.

Overall, Bankrate believes that, as of December 31, 2017, DIVISION 726 exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three important criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of a credit union's financial strength. It works as a buffer against losses and as protection for members during times of financial trouble for the credit union. From a safety and soundness perspective, the more capital, the better.

DIVISION 726 achieved a score of 20 out of a possible 30 points on our test to measure capital adequacy, better than the national average of 15.65.

DIVISION 726 had a capitalization ratio of 20.00 percent in our test, above the average for all credit unions, suggesting that it could be more resilient in a crisis than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the impact of troubled assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.

Having extensive holdings of these types of assets could eventually force a credit union to use capital to absorb losses, decreasing 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, resulting in depressed earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, DIVISION 726 scored 40 out of a possible 40 points, better than the national average of 38.09 points.

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. Earnings may be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, likely making the credit union better able to withstand economic shocks. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's earnings test, DIVISION 726 scored 6 out of a possible 30, lower than the national average of 10.11.

One indication that DIVISION 726 is doing better than 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.