Safe and Sound

MSBA EMPLOYEES

ROCKVILLE CENTR, NY
1
Star Rating
Founded in 1979, MSBA EMPLOYEES is an NCUA-insured credit union based in ROCKVILLE CENTR, NY. The credit union holds assets of $5.3 million, according to December 31, 2017, regulatory filings.

Thanks to the work of 2 full-time employees, the credit union currently holds loans and leases worth $2.1 million. MSBA EMPLOYEES's 1,319 members currently have $4.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MSBA EMPLOYEES exhibited a significantly below-average condition, earning 1 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three key criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial fortitude, capital is essential. It acts as a bulwark against losses and as protection for members during periods of economic trouble for the credit union. From a safety and soundness perspective, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, MSBA EMPLOYEES received a score of 2 out of a possible 30 points, falling short of the national average of 15.65.

MSBA EMPLOYEES appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 2.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

A credit union with large numbers of these kinds of assets could eventually be required to use capital to absorb losses, diminishing 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, pushing down earnings and increasing the chances of a failure in the future.

On Bankrate's test of asset quality, MSBA EMPLOYEES scored 8 out of a possible 40 points, less than the national average of 38.09 points.

MSBA EMPLOYEES's ratio of problem assets was 1.00 percent in our test, identical to the national average.

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. 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, take away from a credit union's ability to do those things.

MSBA EMPLOYEES fell behind the national average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

One indication that the credit union is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.