Safe and Sound

ERIE COUNTY EMPLOYEES

BUFFALO, NY
4
Star Rating
Founded in 1940, ERIE COUNTY EMPLOYEES is an NCUA-insured credit union based in BUFFALO, NY. The credit union holds assets of $26.4 million, according to December 31, 2017, regulatory filings.

Members have $9.3 million on deposit tended by 6 full-time employees. With that footprint, the credit union currently holds loans and leases worth $9.3 million. ERIE COUNTY EMPLOYEES's 4,302 members currently have $23.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ERIE COUNTY EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three important criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial stability, capital is important. It works as a bulwark against losses and provides protection for members during times of economic trouble for the credit union. When looking at safety and soundness, more capital is preferred.

ERIE COUNTY EMPLOYEES received a score of 14 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, coming in below the national average of 15.65.

ERIE COUNTY EMPLOYEES's capitalization ratio of 14.00 percent in our test was lower than the average for all credit unions, a sign that it's weaker than its peers.

Asset Quality Score

Bankrate uses this test to estimate the effect of problem assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

A credit union with extensive holdings of these types of assets may eventually have to use capital to absorb losses, diminishing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, pushing down earnings and increasing the chances of a future failure.

On Bankrate's asset quality test, ERIE COUNTY EMPLOYEES scored 40 out of a possible 40 points, beating the national average of 38.09 points.

A below-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

A credit union's profitability affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand financial trouble. Conversely, losses diminish a credit union's ability to do those things.

ERIE COUNTY EMPLOYEES underperformed the average on Bankrate's test of earnings, achieving a score of 4 out of a possible 30.

One indication that the credit union is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.