Safe and Sound

MUNICIPAL

New York, NY
2
Star Rating
MUNICIPAL is a New York, NY-based, NCUA-insured credit union that opened its doors in 1917. As of December 31, 2017, the credit union had assets of $2.69 billion.

Members have $1.78 billion on deposit tended by 686 full-time employees. With that footprint, the credit union currently holds loans and leases worth $1.78 billion. Its 423,071 members currently have $2.49 billion in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MUNICIPAL exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three key criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and provides protection for members during times of financial instability for the credit union. It follows then that an institution's level of capital is a useful measurement of its financial strength. When it comes to safety and soundness, more capital is preferred.

MUNICIPAL scored below the national average of 15.65 on our test to measure capital adequacy, receiving a score of 0 out of a possible 30 points.

Asset Quality Score

This test's purpose is to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid mortgages.

A credit union with large numbers of these kinds of assets could eventually be forced to use capital to cover 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 money, resulting in lower earnings and potentially more risk of a failure in the future.

MUNICIPAL scored 32 out of a possible 40 points on Bankrate's asset quality test, falling short of the national average of 38.09.

MUNICIPAL's ratio of troubled assets was 0.00 percent in our test, below the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, likely making the credit union more resilient in times of trouble. However, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, MUNICIPAL scored 0 out of a possible 30, less than the national average of 10.11.

One sign that the credit union is outperforming its peers in this area was its earnings ratio of 0.00 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.