Safe and Sound

QUEENS CLUSTER

HICKSVILLE, NY
3
Star Rating
QUEENS CLUSTER is an NCUA-insured credit union founded in 1976 and currently headquartered in HICKSVILLE, NY. Regulatory filings show the credit union having $446,190 in assets, as of December 31, 2017.

QUEENS CLUSTER's 115 members currently have $188,683 in shares with the credit union. With that footprint, the credit union currently holds loans and leases worth $196,678.

Overall, Bankrate believes that, as of December 31, 2017, QUEENS CLUSTER 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 key criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and provides protection for members during periods of financial trouble for the credit union. Therefore, an institution's level of capital is an essential measurement of its financial resilience. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, QUEENS CLUSTER received a score of 10 out of a possible 30 points, falling short of the national average of 15.65.

QUEENS CLUSTER appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 10.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

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

A credit union with a large number of these kinds of assets may eventually have to use capital to cover losses, cutting down on its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in depressed earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, QUEENS CLUSTER scored 40 out of a possible 40 points, above 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 superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability has an effect on its long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or use them to address problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses diminish a credit union's ability to do those things.

QUEENS CLUSTER fell short of the national average on Bankrate's test of earnings, achieving a score of 4 out of a possible 30.

One indication that the credit union is beating 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.