Safe and Sound

NASSAU FINANCIAL

WESTBURY, NY
NR
Star Rating
WESTBURY, NY-based NASSAU FINANCIAL is an NCUA-insured credit union started in 1936. As of December 31, 2017, the credit union had assets of $403.2 million.

Members have $270.7 million on deposit tended by 59 full-time employees. With that footprint, the credit union currently holds loans and leases worth $270.7 million. Its 23,488 members currently have $369.2 million in shares with the credit union.

Overall, Bankrate did not have enough information on this institution to give it a star rating. Here's an analysis of how the credit union did on the three important criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and affords protection for members during periods of financial instability for the credit union. Therefore, when it comes to measuring an a credit union's financial strength, capital is useful. When looking at safety and soundness, more capital is better.

NASSAU FINANCIAL received a score of 6 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, below the national average of 15.65.

NASSAU FINANCIAL had a capitalization ratio of 6.00 percent in our test, below the average for all credit unions, a sign that it's weaker than its peers.

Asset Quality Score

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

A credit union with extensive holdings of these kinds of assets may eventually have to use capital to cover losses, diminishing its buffer of equity. 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 future failure.

NASSAU FINANCIAL scored below the national average of 38.09 on Bankrate's asset quality test, racking up 20 out of a possible 40 points .

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than 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, giving a boost to its capital cushion, or put them to work addressing problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, take away from a credit union's ability to do those things.

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

One sign that the credit union is beating 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.