Safe and Sound

ESL

Rochester, NY
5
Star Rating
ESL is an NCUA-insured credit union founded in 1995 and currently headquartered in Rochester, NY. As of December 31, 2017, the credit union held assets of $6.24 billion.

Thanks to the work of 629 full-time employees, the credit union currently holds loans and leases worth $2.75 billion. Its 350,103 members currently have $3.19 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ESL exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three major criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of an institution's financial strength. It acts as a buffer against losses and provides protection for members when a credit union is struggling financially. When looking at safety and soundness, the higher the capital, the better.

ESL beat out the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, achieving a score of 24 out of a possible 30 points.

ESL had a capitalization ratio of 24.00 percent in our test, above the average for all credit unions, an indication that it's more well prepared for financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of problem assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

A credit union with large numbers of these kinds of assets could eventually have to use capital to cover losses, cutting down on 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, resulting in reduced earnings and potentially more risk of a failure in the future.

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

The credit union's ratio of troubled assets was 0.00 percent in our test, lower than 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 has an effect on its long-term survivability. A credit union can retain its earnings, boosting its capital cushion, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand economic trouble. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, ESL scored 18 out of a possible 30, above the national average of 10.11.

One indication that ESL is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.