Safe and Sound

NEIGHBORHOOD TRUST

NEW YORK, NY
NR
Star Rating
NEW YORK, NY-based NEIGHBORHOOD TRUST is an NCUA-insured credit union started in 1995. The credit union has $10.5 million in assets, according to December 31, 2017, regulatory filings.

With 7 full-time employees, the credit union holds loans and leases worth $7.6 million. Its 3,604 members currently have $7.9 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 a breakdown of how the credit union did 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 works as a cushion against losses and as protection for members during times of economic trouble for the credit union. Therefore, when it comes to measuring an a credit union's financial fortitude, capital is key. When looking at safety and soundness, the more capital, the better.

NEIGHBORHOOD TRUST fell short of the national average of 15.65 on our test to measure the adequacy of a credit union's capital, receiving a score of 6 out of a possible 30 points.

NEIGHBORHOOD TRUST's capitalization ratio of 6.00 percent in our test was less than the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

This test is intended to estimate how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid loans.

A credit union with a large number of these types of assets could eventually be required to use capital to absorb losses, cutting down on its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, diminishing earnings and elevating the risk of a failure in the future.

On Bankrate's asset quality test, NEIGHBORHOOD TRUST scored 0 out of a possible 40 points, coming in below the national average of 38.09 points.

NEIGHBORHOOD TRUST's ratio of problem assets was 1.00 percent in our test, the same as the national average.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or use them to address problematic loans, potentially making the credit union better able to withstand economic trouble. Losses, on the other hand, lessen a credit union's ability to do those things.

NEIGHBORHOOD TRUST fell short of 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 running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.