Safe and Sound

KENMORE N. Y. TEACHERS

Buffalo, NY
4
Star Rating
KENMORE N. Y. TEACHERS is a Buffalo, NY-based, NCUA-insured credit union started in 1935. The credit union has assets of $45.0 million, according to December 31, 2017, regulatory filings.

Members have $16.9 million on deposit tended by 10 full-time employees. With that footprint, the credit union currently holds loans and leases worth $16.9 million. Its 3,672 members currently have $41.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, KENMORE N. Y. TEACHERS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three key criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is valuable. It works as a cushion against losses and affords protection for members during periods of economic trouble for the credit union. From a safety and soundness perspective, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, KENMORE N. Y. TEACHERS received a score of 6 out of a possible 30 points, falling short of the national average of 15.65.

KENMORE N. Y. TEACHERS appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 6.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

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

A credit union with lots of these kinds of assets may eventually be forced to use capital to absorb losses, decreasing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, diminishing earnings and increasing the risk of a future failure.

On Bankrate's asset quality test, KENMORE N. Y. TEACHERS scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

A lower-than-average ratio of troubled 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 earning money affects its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or use them to address problematic loans, potentially making the credit union more resilient in times of trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's earnings test, KENMORE N. Y. TEACHERS scored 10 out of a possible 30, falling short of the national average of 10.11.

KENMORE N. Y. TEACHERS had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's running ahead of 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.