Safe and Sound

NORTHERN CHAUTAUQUA

SILVER CREEK, NY
4
Star Rating
NORTHERN CHAUTAUQUA is an NCUA-insured credit union founded in 1969 and currently headquartered in SILVER CREEK, NY. As of December 31, 2017, the credit union held assets of $3.7 million.

The credit union holds loans and leases worth $2.0 million. Its 670 members currently have $3.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NORTHERN CHAUTAUQUA exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three major criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is crucial. It acts as a buffer against losses and as protection for members during times of economic trouble for the credit union. When looking at safety and soundness, the higher the capital, the better.

NORTHERN CHAUTAUQUA received a score of 6 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, failing to reach the national average of 15.65.

NORTHERN CHAUTAUQUA's capitalization ratio of 6.00 percent in our test was less than the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of troubled assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

Having a large number of these types of assets suggests a credit union may have to use capital to absorb 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.

On Bankrate's asset quality test, NORTHERN CHAUTAUQUA scored 40 out of a possible 40 points, better than the national average of 38.09 points.

NORTHERN CHAUTAUQUA's ratio of problem 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 safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand financial trouble. Losses, on the other hand, reduce a credit union's ability to do those things.

NORTHERN CHAUTAUQUA exceeded the national average on Bankrate's test of earnings, achieving a score of 12 out of a possible 30.

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, above 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.