Safe and Sound

GREAT ERIE

ORCHARD PARK, NY
4
Star Rating
GREAT ERIE is an NCUA-insured credit union started in 1952 and currently headquartered in ORCHARD PARK, NY. As of December 31, 2017, the credit union held assets of $86.6 million.

With 18 full-time employees, the credit union currently holds loans and leases worth $53.6 million. GREAT ERIE's 7,946 members currently have $77.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, GREAT ERIE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three key criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and affords protection for members during times of economic trouble for the credit union. It follows then that an institution's level of capital is an important measurement of its financial fortitude. When looking at safety and soundness, more capital is preferred.

GREAT ERIE received a score of 10 out of a possible 30 points on our test to measure capital adequacy, lower than the national average of 15.65.

GREAT ERIE had a capitalization ratio of 10.00 percent in our test, less than the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

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

Having a large number of these kinds of assets could eventually require 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 thus aren't earning money, decreasing earnings and increasing the chances of a future failure.

GREAT ERIE did better than the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

A below-average ratio of problem 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 safety and soundness. Earnings can be retained by the credit union, increasing its capital cushion, or be used to address problematic loans, likely making the credit union better able to withstand financial shocks. However, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, GREAT ERIE scored 10 out of a possible 30, coming in below the national average of 10.11.

One indication that GREAT ERIE is outperforming 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.