Safe and Sound

MOHAWK VALLEY

MARCY, NY
4
Star Rating
MOHAWK VALLEY is a MARCY, NY-based, NCUA-insured credit union dating back to 1971. The credit union holds $34.9 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 4 full-time employees, the credit union currently holds loans and leases worth $18.6 million. Its 3,177 members currently have $30.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MOHAWK VALLEY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three important criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of a credit union's financial resilience. It works as a cushion against losses and as protection for members during times of financial trouble for the credit union. When looking at safety and soundness, the higher the capital, the better.

MOHAWK VALLEY beat out the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, achieving a score of 16 out of a possible 30 points.

MOHAWK VALLEY's capitalization ratio of 16.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

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

Having lots of these kinds of assets may eventually force a credit union to use capital to cover losses, decreasing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a failure in the future.

MOHAWK VALLEY finished below the national average of 38.09 on Bankrate's asset quality test, racking up 32 out of a possible 40 points .

A below-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

How successful a credit union is at making 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 better prepared to withstand financial trouble. However, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, MOHAWK VALLEY scored 10 out of a possible 30, coming in below the national average of 10.11.

MOHAWK VALLEY had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign 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.