Safe and Sound

GREAT NECK SCHOOL EMPLOYEES

Great Neck, NY
5
Star Rating
GREAT NECK SCHOOL EMPLOYEES is a Great Neck, NY-based, NCUA-insured credit union dating back to 1945. As of December 31, 2017, the credit union held assets of $3.4 million.

The credit union holds loans and leases worth $1.7 million. Its 474 members currently have $2.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, GREAT NECK SCHOOL EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major 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 acts as a bulwark against losses and affords protection for members during times of financial trouble for the credit union. It follows then that when it comes to measuring an a credit union's financial resilience, capital is key. When looking at safety and soundness, the higher the capital, the better.

GREAT NECK SCHOOL EMPLOYEES racked up 30 out of a possible 30 points on our test to measure capital adequacy, better than the national average of 15.65.

GREAT NECK SCHOOL EMPLOYEES had a capitalization ratio of 30.00 percent in our test, above the average for all credit unions, an indication that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to estimate the effect of troubled assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

Having large numbers of these types of assets could eventually require a credit union to use capital to absorb losses, diminishing its equity buffer. 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, resulting in depressed earnings and potentially more risk of a failure in the future.

GREAT NECK SCHOOL EMPLOYEES did better than the national average of 38.09 on Bankrate's asset quality test, 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 greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects its safety and soundness. Earnings may be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, likely making the credit union better able to withstand financial shocks. Obviously, credit unions that are losing money are less able to do those things.

GREAT NECK SCHOOL EMPLOYEES did below-average on Bankrate's earnings test, achieving a score of 8 out of a possible 30.

GREAT NECK SCHOOL EMPLOYEES had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's doing better than 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.