Safe and Sound

INNER LAKES

WESTFIELD, NY
4
Star Rating
INNER LAKES is a WESTFIELD, NY-based, NCUA-insured credit union dating back to 1952. As of December 31, 2017, the credit union held assets of $85.4 million.

Members have $35.1 million on deposit tended by 21 full-time employees. With that footprint, the credit union has amassed loans and leases worth $35.1 million. INNER LAKES's 9,097 members currently have $79.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, INNER LAKES exhibited a good condition, earning 4 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 U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial fortitude, capital is important. It works as a bulwark against losses and as protection for members when a credit union is experiencing financial instability. From a safety and soundness perspective, the more capital, the better.

INNER LAKES received a score of 6 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.

INNER LAKES had a capitalization ratio of 6.00 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's purpose is to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as unpaid mortgages.

Having large numbers of these kinds of assets suggests a credit union could eventually have to use capital to absorb losses, diminishing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in diminished earnings and potentially more risk of a failure in the future.

INNER LAKES scored 40 out of a possible 40 points on Bankrate's test of asset quality, better than the national average of 38.09.

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

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. A credit union can retain its earnings, boosting its capital cushion, or use them to address problematic loans, potentially making the credit union better able to withstand economic shocks. Losses, on the other hand, take away from a credit union's ability to do those things.

INNER LAKES did above-average on Bankrate's test of earnings, achieving a score of 18 out of a possible 30.

INNER LAKES had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's outperforming 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.