Safe and Sound

GRS EMPLOYEES

WEST HENRIETTA, NY
1
Star Rating
WEST HENRIETTA, NY-based GRS EMPLOYEES is an NCUA-insured credit union started in 1955. Regulatory filings show the credit union having $2.7 million in assets, as of December 31, 2017.

Its 560 members currently have $2.5 million in shares with the credit union. With that footprint, the credit union has amassed loans and leases worth $1.6 million.

Overall, Bankrate believes that, as of December 31, 2017, GRS EMPLOYEES exhibited a significantly below-average condition, earning 1 out of 5 stars for safety and soundness. Here's an analysis 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

Capital works as a buffer against losses and provides protection for members when a credit union is experiencing financial instability. It follows then that when it comes to measuring an an institution's financial fortitude, capital is essential. From a safety and soundness perspective, the higher the capital, the better.

GRS EMPLOYEES received a score of 2 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, coming in below the national average of 15.65.

GRS EMPLOYEES appears to be weaker than its peers in this area, with a capitalization ratio of 2.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

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

A credit union with extensive holdings of these types of assets could eventually have to use capital to absorb losses, shrinking 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, resulting in depressed earnings and potentially more risk of a future failure.

GRS EMPLOYEES finished below the national average of 38.09 on Bankrate's asset quality test, racking up 24 out of a possible 40 points .

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

Earnings score

A credit union's ability to earn money has an effect on its long-term survivability. Earnings may be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, potentially making the credit union better able to withstand economic shocks. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's earnings test, GRS EMPLOYEES scored 0 out of a possible 30, lower than the national average of 10.11.

One sign that GRS EMPLOYEES is doing better than 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.