Safe and Sound

LOWER EAST SIDE PEOPLE'S

NEW YORK, NY
2
Star Rating
Founded in 1986, LOWER EAST SIDE PEOPLE'S is an NCUA-insured credit union headquartered in NEW YORK, NY. As of December 31, 2017, the credit union had assets of $54.9 million.

Thanks to the work of 25 full-time employees, the credit union has amassed loans and leases worth $40.1 million. LOWER EAST SIDE PEOPLE'S's 8,023 members currently have $46.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LOWER EAST SIDE PEOPLE'S exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three important criteria Bankrate used to evaluate American 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 provides protection for members when a credit union is experiencing economic trouble. Therefore, when it comes to measuring an a credit union's financial resilience, capital is important. When looking at safety and soundness, more capital is better.

LOWER EAST SIDE PEOPLE'S received a score of 6 out of a possible 30 points on our test to measure capital adequacy, less than the national average of 15.65.

LOWER EAST SIDE PEOPLE'S's capitalization ratio of 6.00 percent in our test was less than the average for all credit unions, a sign that it's on less solid financial footing than its peers.

Asset Quality Score

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

Having lots of these types of assets may eventually require a credit union to use capital to absorb losses, reducing 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 interest for the credit union, diminishing earnings and elevating the chances of a future failure.

On Bankrate's test of asset quality, LOWER EAST SIDE PEOPLE'S scored 24 out of a possible 40 points, falling short of the national average of 38.09 points.

A below-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. Earnings can be retained by the credit union, boosting its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in times of trouble. Losses, on the other hand, reduce a credit union's ability to do those things.

LOWER EAST SIDE PEOPLE'S did below-average on Bankrate's earnings test, achieving a score of 10 out of a possible 30.

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