Safe and Sound

GENESEE VALLEY

GENESEO, NY
5
Star Rating
GENESEO, NY-based GENESEE VALLEY is an NCUA-insured credit union founded in 1974. As of December 31, 2017, the credit union held assets of $79.2 million.

Members have $65.4 million on deposit tended by 26 full-time employees. With that footprint, the credit union currently holds loans and leases worth $65.4 million. Its 8,147 members currently have $71.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, GENESEE VALLEY exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three key criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial resilience, capital is crucial. From a safety and soundness perspective, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, GENESEE VALLEY received a score of 10 out of a possible 30 points, coming in below the national average of 15.65.

GENESEE VALLEY had a capitalization ratio of 10.00 percent in our test, worse than the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as past-due loans.

Having lots of these types of assets may eventually force a credit union to use capital to cover losses, reducing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a future failure.

GENESEE VALLEY scored 40 out of a possible 40 points on Bankrate's test of asset quality, above the national average of 38.09.

The credit union's ratio of problem assets was 0.00 percent in our test, below the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, potentially making the credit union more resilient in tough times. Losses, on the other hand, reduce a credit union's ability to do those things.

GENESEE VALLEY scored 22 out of a possible 30 on Bankrate's test of earnings, better than the national average of 10.11.

One sign that the credit union is running ahead of 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.