Safe and Sound

FINGER LAKES

GENEVA, NY
4
Star Rating
FINGER LAKES is a GENEVA, NY-based, NCUA-insured credit union dating back to 1967. As of December 31, 2017, the credit union held assets of $117.3 million.

Thanks to the efforts of 33 full-time employees, the credit union holds loans and leases worth $93.6 million. FINGER LAKES's 15,344 members currently have $106.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FINGER LAKES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three key criteria Bankrate used to score 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 crucial. It acts as a buffer against losses and as protection for members when a credit union is experiencing economic instability. When it comes to safety and soundness, the higher the capital, the better.

FINGER LAKES fell short of the national average of 15.65 on our test to measure capital adequacy, receiving a score of 8 out of a possible 30 points.

FINGER LAKES's capitalization ratio of 8.00 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

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 past-due loans.

Having lots of these types of assets could eventually require a credit union to use capital to cover losses, shrinking its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, pushing down earnings and increasing the chances of a failure in the future.

FINGER LAKES exceeded the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

A lower-than-average ratio of problem 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 affects its long-term survivability. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in tough times. Conversely, losses take away from a credit union's ability to do those things.

On Bankrate's earnings test, FINGER LAKES scored 16 out of a possible 30, better than the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, an indication that it's running ahead of its peers in this area.

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.