Safe and Sound

LOVE GOSPEL ASSEMBLY

Bronx, NY
5
Star Rating
LOVE GOSPEL ASSEMBLY is a Bronx, NY-based, NCUA-insured credit union dating back to 2005. As of June 30, 2017, the credit union held assets of $61,506.

LOVE GOSPEL ASSEMBLY's 168 members currently have $58,363 in shares with the credit union. With that footprint, the credit union holds loans and leases worth $15,303.

Overall, Bankrate believes that, as of June 30, 2017, LOVE GOSPEL ASSEMBLY exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union faired on the three key criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial resilience, capital is essential. It works as a bulwark against losses and provides protection for members when a credit union is experiencing financial instability. When looking at safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, LOVE GOSPEL ASSEMBLY achieved a score of 28 out of a possible 30 points, beating the national average of 15.26.

LOVE GOSPEL ASSEMBLY appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 19.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

A credit union with large numbers of these kinds of assets could eventually have to use capital to cover losses, shrinking its cushion of equity. 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 reduced earnings and potentially more risk of a failure in the future.

LOVE GOSPEL ASSEMBLY scored 40 out of a possible 40 points on Bankrate's asset quality test, better than the national average of 38.15.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, LOVE GOSPEL ASSEMBLY scored 30 out of a possible 30, beating out the national average of 10.31.

LOVE GOSPEL ASSEMBLY had an earnings ratio of 49.00 percent in our test, above 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.