Safe and Sound

NEA

BARDONIA, NY
NR
Star Rating
NEA is an NCUA-insured credit union started in 1976 and currently based in BARDONIA, NY. The credit union holds $95.4 million in assets, according to June 30, 2017, regulatory filings.

Members have $61.6 million on deposit tended by 30 full-time employees. With that footprint, the credit union currently holds loans and leases worth $61.6 million. Its 13,213 members currently have $89.9 million in shares with the credit union.

Overall, Bankrate did not have enough information on this institution to give it a star rating. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members during times of economic instability for the credit union. Therefore, a credit union's level of capital is a valuable measurement of its financial strength. When looking at safety and soundness, more capital is better.

NEA received a score of 0 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, failing to reach the national average of 15.26.

NEA appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 4.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

This test is intended to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as past-due mortgages.

A credit union with lots of these kinds of assets may eventually be required 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, decreasing earnings and increasing the risk of a future failure.

NEA scored 0 out of a possible 40 points on Bankrate's asset quality test, coming in below the national average of 38.15.

Troubled assets made up 84.00 percent of the credit union's total assets in our test, higher than the national average and a potential cause for concern.

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. A credit union can retain its earnings, increasing its capital cushion, or use them to deal with problematic loans, potentially making the credit union better able to withstand economic trouble. Conversely, losses reduce a credit union's ability to do those things.

On Bankrate's earnings test, NEA scored 0 out of a possible 30, failing to reach the national average of 10.31.

One sign that NEA is performing behind its peers in this area was its earnings ratio of -106.00 percent in our test, lower 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.