Safe and Sound

NIAGARA MOHAWK PWR COR TROY E

TROY, NY
2
Star Rating
Founded in 1936, NIAGARA MOHAWK PWR COR TROY E is an NCUA-insured credit union headquartered in TROY, NY. The credit union holds $4.1 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 3 full-time employees, the credit union currently holds loans and leases worth $2.8 million. NIAGARA MOHAWK PWR COR TROY E's 578 members currently have $3.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NIAGARA MOHAWK PWR COR TROY E exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three important criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and provides protection for members when a credit union is experiencing financial instability. It follows then that when it comes to measuring an an institution's financial fortitude, capital is valuable. From a safety and soundness perspective, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, NIAGARA MOHAWK PWR COR TROY E received a score of 14 out of a possible 30 points, coming in below the national average of 15.65.

NIAGARA MOHAWK PWR COR TROY E's capitalization ratio of 14.00 percent in our test was less than the average for all credit unions, an indication that it could be less resilient in a crisis than its peers.

Asset Quality Score

Bankrate uses this test to estimate the effect of troubled assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

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

NIAGARA MOHAWK PWR COR TROY E scored 36 out of a possible 40 points on Bankrate's test of asset quality, less than the national average of 38.09.

The credit union's ratio of problem assets was 0.00 percent in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its long-term survivability. A credit union can retain its earnings, increasing its capital buffer, or use them to deal with problematic loans, likely making the credit union more resilient in times of trouble. Credit unions that are losing money, however, have less ability to do those things.

NIAGARA MOHAWK PWR COR TROY E scored 0 out of a possible 30 on Bankrate's earnings test, less than the national average of 10.11.

One sign that the credit union is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.