Safe and Sound

REDIFORM NIAGARA FALLS NY

NIAGARA FALLS, NY
4
Star Rating
REDIFORM NIAGARA FALLS NY is a NIAGARA FALLS, NY-based, NCUA-insured credit union that opened its doors in 1936. Regulatory filings show the credit union having $10.9 million in assets, as of December 31, 2017.

Thanks to the work of 3 full-time employees, the credit union holds loans and leases worth $6.0 million. Its 2,353 members currently have $9.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, REDIFORM NIAGARA FALLS NY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three key criteria Bankrate used to score American 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 struggling financially. It follows then that a credit union's level of capital is an important measurement of its financial fortitude. From a safety and soundness perspective, more capital is preferred.

REDIFORM NIAGARA FALLS NY scored 20 out of a possible 30 points on our test to measure capital adequacy, beating out the national average of 15.65.

REDIFORM NIAGARA FALLS NY appears to be more resilient than its peers, with a capitalization ratio of 20.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

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

Having extensive holdings of these kinds of assets suggests a credit union could eventually have to use capital to cover losses, diminishing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in reduced earnings and potentially more risk of a failure in the future.

REDIFORM NIAGARA FALLS NY beat out the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. Earnings can be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, likely making the credit union better able to withstand financial trouble. However, credit unions that are losing money are less able to do those things.

REDIFORM NIAGARA FALLS NY received below-average marks on Bankrate's earnings test, achieving a score of 2 out of a possible 30.

One indication that REDIFORM NIAGARA FALLS NY is doing better than 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.