Safe and Sound

MELROSE

BRIARWOOD, NY
NR
Star Rating
Founded in 1922, MELROSE is an NCUA-insured credit union based in BRIARWOOD, NY. As of December 31, 2017, the credit union had assets of $1.36 billion.

With 82 full-time employees, the credit union holds loans and leases worth $1.43 billion. Its 21,279 members currently have $1.21 billion in shares with the credit union.

Overall, Bankrate did not have enough information on this institution to give it a star rating. Here's a breakdown of how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and provides protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an an institution's financial stability, capital is essential. From a safety and soundness perspective, the more capital, the better.

MELROSE fell short of the national average of 15.65 on our test to measure the adequacy of a credit union's capital, scoring 0 out of a possible 30 points.

Asset Quality Score

In this test, Bankrate tries to determine the impact of troubled assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with extensive holdings of these kinds of assets may eventually be forced to use capital to cover losses, shrinking its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in diminished earnings and potentially more risk of a failure in the future.

MELROSE scored 0 out of a possible 40 points on Bankrate's asset quality test, coming in below the national average of 38.09.

The credit union's ratio of troubled assets was 13.00 percent in our test, above the national average and a potential area of concern.

Earnings score

A credit union's ability to earn money has an effect on its long-term survivability. Earnings can be retained by the credit union, expanding its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in tough times. Losses, on the other hand, reduce a credit union's ability to do those things.

MELROSE scored 0 out of a possible 30 on Bankrate's test of earnings, failing to reach the national average of 10.11.

One sign that the credit union is running ahead of its peers in this area was its earnings ratio of 1.00 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.