Safe and Sound

NIAGARA FALLS MEM. MED. CENTER

NIAGARA FALLS, NY
4
Star Rating
NIAGARA FALLS MEM. MED. CENTER is a NIAGARA FALLS, NY-based, NCUA-insured credit union started in 1967. As of December 31, 2017, the credit union held assets of $4.1 million.

With 2 full-time employees, the credit union holds loans and leases worth $1.2 million. NIAGARA FALLS MEM. MED. CENTER's 1,052 members currently have $3.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NIAGARA FALLS MEM. MED. CENTER exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three key criteria Bankrate used to score 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 as protection for members during times of financial instability 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.

On our test to measure capital adequacy, NIAGARA FALLS MEM. MED. CENTER received a score of 8 out of a possible 30 points, coming in below the national average of 15.65.

NIAGARA FALLS MEM. MED. CENTER's capitalization ratio of 8.00 percent in our test was lower than the average for all credit unions, suggesting that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as unpaid mortgages.

Having large numbers of these kinds of assets suggests a credit union could eventually have to use capital to cover losses, decreasing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a future failure.

NIAGARA FALLS MEM. MED. CENTER finished below the national average of 38.09 on Bankrate's test of asset quality, racking up 32 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 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. A credit union can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, likely making the credit union better prepared to withstand economic shocks. However, credit unions that are losing money have less ability to do those things.

NIAGARA FALLS MEM. MED. CENTER beat the national average on Bankrate's earnings test, achieving a score of 28 out of a possible 30.

NIAGARA FALLS MEM. MED. CENTER had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication 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.