Safe and Sound

FAR ROCKAWAY POSTAL

FAR ROCKAWAY, NY
4
Star Rating
FAR ROCKAWAY, NY-based FAR ROCKAWAY POSTAL is an NCUA-insured credit union founded in 1941. Regulatory filings show the credit union having assets of $383,322, as of December 31, 2017.

The credit union holds loans and leases worth $264,418. FAR ROCKAWAY POSTAL's 87 members currently have $280,311 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FAR ROCKAWAY POSTAL exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three key criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is essential. It acts as a bulwark against losses and provides protection for members during times of economic instability for the credit union. From a safety and soundness perspective, the more capital, the better.

On our test to measure capital adequacy, FAR ROCKAWAY POSTAL scored 30 out of a possible 30 points, beating the national average of 15.65.

FAR ROCKAWAY POSTAL appears to be on more solid financial footing than its peers, with a capitalization ratio of 30.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

This test's purpose is to estimate how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as past-due mortgages.

A credit union with lots of these kinds of assets could eventually be required to use capital to cover losses, reducing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, pushing down earnings and increasing the chances of a future failure.

On Bankrate's test of asset quality, FAR ROCKAWAY POSTAL scored 32 out of a possible 40 points, failing to reach 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 superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. Earnings may be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, likely making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's earnings test, FAR ROCKAWAY POSTAL scored 0 out of a possible 30, falling short of the national average of 10.11.

One sign that FAR ROCKAWAY POSTAL is doing better than 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.