Safe and Sound

LONG ISLAND COMMUNITY

PORT JEFFERSON, NY
3
Star Rating
LONG ISLAND COMMUNITY is a PORT JEFFERSON, NY-based, NCUA-insured credit union founded in 1973. The credit union holds $19.2 million in assets, according to December 31, 2017, regulatory filings.

With 4 full-time employees, the credit union has amassed loans and leases worth $7.7 million. LONG ISLAND COMMUNITY's 2,361 members currently have $17.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LONG ISLAND COMMUNITY exhibited a generally satisfactory condition, earning 3 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 grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial stability, capital is crucial. It acts as a cushion against losses and affords protection for members when a credit union is struggling financially. From a safety and soundness perspective, the higher the capital, the better.

LONG ISLAND COMMUNITY received a score of 8 out of a possible 30 points on our test to measure capital adequacy, failing to reach the national average of 15.65.

LONG ISLAND COMMUNITY appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 8.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the effect of problem assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having a large number of these types of assets suggests a credit union may have to use capital to cover losses, shrinking 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, reducing earnings and increasing the risk of a future failure.

On Bankrate's test of asset quality, LONG ISLAND COMMUNITY scored 32 out of a possible 40 points, lower than the national average of 38.09 points.

A lower-than-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

A credit union's ability to earn money has an effect on its long-term survivability. A credit union can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. Obviously, credit unions that are losing money have less ability to do those things.

LONG ISLAND COMMUNITY scored 6 out of a possible 30 on Bankrate's test of earnings, failing to reach the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, a sign that it's beating 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.