Safe and Sound

EDUCATIONAL AND GOVERNMENTAL

Hartsdale, NY
4
Star Rating
Started in 1937, EDUCATIONAL AND GOVERNMENTAL is an NCUA-insured credit union based in Hartsdale, NY. As of December 31, 2017, the credit union had assets of $54.6 million.

Thanks to the efforts of 9 full-time employees, the credit union has amassed loans and leases worth $15.1 million. EDUCATIONAL AND GOVERNMENTAL's 6,564 members currently have $48.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, EDUCATIONAL AND GOVERNMENTAL exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three key criteria Bankrate used to evaluate American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of a credit union's financial strength. It works as a cushion against losses and as protection for members when a credit union is experiencing financial trouble. When looking at safety and soundness, the higher the capital, the better.

EDUCATIONAL AND GOVERNMENTAL fell short of the national average of 15.65 on our test to measure the adequacy of a credit union's capital, receiving a score of 12 out of a possible 30 points.

EDUCATIONAL AND GOVERNMENTAL's capitalization ratio of 12.00 percent in our test was less 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 estimate how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as unpaid mortgages.

Having extensive holdings of these types of assets may eventually force a credit union to use capital to cover losses, decreasing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, decreasing earnings and elevating the chances of a future failure.

EDUCATIONAL AND GOVERNMENTAL did better than the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

Troubled assets made up 0.00 percent of EDUCATIONAL AND GOVERNMENTAL's total assets in our test, lower than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance affects its safety and soundness. Earnings can be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses lessen a credit union's ability to do those things.

EDUCATIONAL AND GOVERNMENTAL scored 4 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 10.11.

One sign that EDUCATIONAL AND GOVERNMENTAL 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.