Safe and Sound

GP COMMUNITY

PLATTSBURGH, NY
2
Star Rating
Founded in 1964, GP COMMUNITY is an NCUA-insured credit union headquartered in PLATTSBURGH, NY. Regulatory filings show the credit union having assets of $6.5 million, as of June 30, 2017.

Members have $3.8 million on deposit tended by 5 full-time employees. With that footprint, the credit union has amassed loans and leases worth $3.8 million. GP COMMUNITY's 1,161 members currently have $6.0 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, GP COMMUNITY exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three major criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and as protection for members when a credit union is experiencing economic trouble. Therefore, a credit union's level of capital is a crucial measurement of its financial strength. 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, GP COMMUNITY received a score of 4 out of a possible 30 points, less than the national average of 15.26.

GP COMMUNITY had a capitalization ratio of 7.00 percent in our test, worse than the average for all credit unions, a sign that it's weaker than its peers.

Asset Quality Score

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

A credit union with lots of these types of assets could eventually have to use capital to absorb losses, reducing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, pushing down earnings and increasing the risk of a future failure.

GP COMMUNITY beat out the national average of 38.15 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

Troubled assets made up 0.00 percent of the credit union's total assets in our test, less than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings can be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses reduce a credit union's ability to do those things.

GP COMMUNITY scored 0 out of a possible 30 on Bankrate's test of earnings, failing to reach the national average of 10.31.

GP COMMUNITY had an earnings ratio of -110.00 percent in our test, worse than the average for all credit unions, suggesting that it's performing behind 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.