Safe and Sound

NIAGARA'S CHOICE

NIAGARA FALLS, NY
3
Star Rating
Founded in 1953, NIAGARA'S CHOICE is an NCUA-insured credit union based in NIAGARA FALLS, NY. Regulatory filings show the credit union having assets of $177.5 million, as of December 31, 2017.

Members have $107.6 million on deposit tended by 48 full-time employees. With that footprint, the credit union currently holds loans and leases worth $107.6 million. NIAGARA'S CHOICE's 23,687 members currently have $160.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NIAGARA'S CHOICE exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three important criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members during periods of financial trouble for the credit union. It follows then that when it comes to measuring an an institution's financial resilience, capital is key. From a safety and soundness perspective, more capital is better.

NIAGARA'S CHOICE fell short of the national average of 15.65 on our test to measure the adequacy of a credit union's capital, scoring 8 out of a possible 30 points.

NIAGARA'S CHOICE appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 8.00 percent in our test, below the average for all credit unions.

Asset Quality Score

This test's purpose is to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as past-due mortgages.

A credit union with extensive holdings of these types of assets could eventually be forced to use capital to cover losses, decreasing its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, reducing earnings and increasing the chances of a failure in the future.

NIAGARA'S CHOICE scored 32 out of a possible 40 points on Bankrate's test of asset quality, lower than the national average of 38.09.

A below-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 making money affects its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or use them to deal with problematic loans, potentially making the credit union better prepared to withstand economic trouble. Losses, on the other hand, diminish a credit union's ability to do those things.

NIAGARA'S CHOICE scored 14 out of a possible 30 on Bankrate's earnings test, better than the national average of 10.11.

NIAGARA'S CHOICE had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting 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.