Safe and Sound

LONG ISLAND STATE EMPLOYEES

Hauppauge, NY
4
Star Rating
Founded in 1938, LONG ISLAND STATE EMPLOYEES is an NCUA-insured credit union based in Hauppauge, NY. Regulatory filings show the credit union having $14.0 million in assets, as of December 31, 2017.

Thanks to the work of 3 full-time employees, the credit union currently holds loans and leases worth $4.5 million. LONG ISLAND STATE EMPLOYEES's 2,123 members currently have $12.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LONG ISLAND STATE EMPLOYEES exhibited a good condition, earning 4 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 score U.S. credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and affords protection for members when a credit union is experiencing financial instability. It follows then that an institution's level of capital is a useful measurement of its financial fortitude. From a safety and soundness perspective, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, LONG ISLAND STATE EMPLOYEES received a score of 10 out of a possible 30 points, falling short of the national average of 15.65.

LONG ISLAND STATE EMPLOYEES had a capitalization ratio of 10.00 percent in our test, lower than the average for all credit unions, a sign that it's weaker than its peers.

Asset Quality Score

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

A credit union with a large number of these kinds of assets may eventually have to use capital to cover losses, shrinking its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, LONG ISLAND STATE EMPLOYEES scored 36 out of a possible 40 points, below the national average of 38.09 points.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, below the national average and 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. A credit union can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, reduce a credit union's ability to do those things.

LONG ISLAND STATE EMPLOYEES scored 18 out of a possible 30 on Bankrate's earnings test, beating the national average of 10.11.

One indication that LONG ISLAND STATE EMPLOYEES is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.