Safe and Sound

NIAGARA FRONTIER FEDERAL MUNICIPAL

NIAGARA FALLS, NY
4
Star Rating
NIAGARA FRONTIER FEDERAL MUNICIPAL is an NCUA-insured credit union founded in 1931 and currently headquartered in NIAGARA FALLS, NY. As of December 31, 2017, the credit union held assets of $2.9 million.

The credit union has amassed loans and leases worth $1.4 million. Its 478 members currently have $2.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NIAGARA FRONTIER FEDERAL MUNICIPAL exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired 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 is an essential measurement of an institution's financial resilience. It works as a buffer against losses and provides protection for members when a credit union is struggling financially. When looking at safety and soundness, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, NIAGARA FRONTIER FEDERAL MUNICIPAL scored 20 out of a possible 30 points, better than the national average of 15.65.

NIAGARA FRONTIER FEDERAL MUNICIPAL's capitalization ratio of 20.00 percent in our test was above the average for all credit unions, suggesting that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of problem assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with a large number of these kinds of assets may eventually be forced to use capital to absorb losses, decreasing 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, resulting in reduced earnings and potentially more risk of a failure in the future.

NIAGARA FRONTIER FEDERAL MUNICIPAL scored 40 out of a possible 40 points on Bankrate's test of asset quality, exceeding the national average of 38.09.

NIAGARA FRONTIER FEDERAL MUNICIPAL's ratio of troubled assets was 0.00 percent in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance affects its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand economic shocks. Conversely, losses lessen a credit union's ability to do those things.

NIAGARA FRONTIER FEDERAL MUNICIPAL scored 0 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 10.11.

NIAGARA FRONTIER FEDERAL MUNICIPAL had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's beating 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.