Safe and Sound

N C P D

Plainview, NY
5
Star Rating
N C P D is an NCUA-insured credit union started in 1940 and currently based in Plainview, NY. As of December 31, 2017, the credit union held assets of $737.7 million.

With 19 full-time employees, the credit union has amassed loans and leases worth $175.6 million. N C P D's 15,551 members currently have $632.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, N C P D exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three important criteria Bankrate used to evaluate American credit unions on safety and soundness.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members when a credit union is struggling financially. It follows then that a credit union's level of capital is a crucial measurement of its financial fortitude. From a safety and soundness perspective, the higher the capital, the better.

N C P D achieved a score of 18 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, better than the national average of 15.65.

N C P D appears to be on more solid financial footing than its peers, with a capitalization ratio of 18.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of troubled assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having a large number of these kinds of assets could eventually force a credit union to use capital to absorb losses, decreasing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, reducing earnings and elevating the chances of a failure in the future.

On Bankrate's test of asset quality, N C P D scored 40 out of a possible 40 points, above the national average of 38.09 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 earning money has an effect on its safety and soundness. Earnings can be retained by the credit union, increasing its capital cushion, or be used to address problematic loans, likely making the credit union better able to withstand financial shocks. Conversely, losses lessen a credit union's ability to do those things.

N C P D scored 14 out of a possible 30 on Bankrate's earnings test, beating the national average of 10.11.

N C P D had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, a sign that it's outperforming 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.