Safe and Sound

NIAGARA REGIONAL

NORTH TONAWANDA, NY
4
Star Rating
NORTH TONAWANDA, NY-based NIAGARA REGIONAL is an NCUA-insured credit union founded in 1939. As of December 31, 2017, the credit union had assets of $29.7 million.

Thanks to the work of 8 full-time employees, the credit union currently holds loans and leases worth $18.6 million. Its 2,558 members currently have $26.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NIAGARA REGIONAL exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three key criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and provides protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial stability, capital is important. When it comes to safety and soundness, more capital is better.

NIAGARA REGIONAL received a score of 12 out of a possible 30 points on our test to measure capital adequacy, lower than the national average of 15.65.

NIAGARA REGIONAL had a capitalization ratio of 12.00 percent in our test, below the average for all credit unions, an indication that it's on less solid financial footing than its peers.

Asset Quality Score

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

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

On Bankrate's asset quality test, NIAGARA REGIONAL scored 40 out of a possible 40 points, beating out the national average of 38.09 points.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, less than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on 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 more resilient in tough times. Losses, on the other hand, take away from a credit union's ability to do those things.

NIAGARA REGIONAL scored 4 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 10.11.

One sign that NIAGARA REGIONAL is outperforming its peers in this area was its earnings ratio of 0.00 percent in our test, better 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.