Safe and Sound

SARATOGA'S COMMUNITY

SARATOGA SPRING, NY
2
Star Rating
Founded in 1945, SARATOGA'S COMMUNITY is an NCUA-insured credit union headquartered in SARATOGA SPRING, NY. Regulatory filings show the credit union having $41.2 million in assets, as of December 31, 2017.

With 15 full-time employees, the credit union currently holds loans and leases worth $30.2 million. Its 6,058 members currently have $38.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SARATOGA'S COMMUNITY exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Keep reading for a look at 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

When it comes to measuring an institution's financial strength, capital is crucial. It acts as a bulwark against losses and affords protection for members when a credit union is experiencing financial instability. When it comes to safety and soundness, the higher the capital, the better.

SARATOGA'S COMMUNITY scored below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, racking up 4 out of a possible 30 points.

SARATOGA'S COMMUNITY appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 4.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

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

A credit union with large numbers of these types of assets could eventually be forced to use capital to absorb losses, cutting down on its buffer of equity. 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 future failure.

SARATOGA'S COMMUNITY fell below the national average of 38.09 on Bankrate's asset quality test, racking up 32 out of a possible 40 points .

SARATOGA'S COMMUNITY's ratio of troubled assets was 0.00 percent in our test, lower than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money affects its long-term survivability. Earnings can be retained by the credit union, expanding its capital buffer, or be used to deal with problematic loans, likely making the credit union better prepared to withstand financial shocks. Credit unions that are losing money, however, are less able to do those things.

SARATOGA'S COMMUNITY underperformed the average on Bankrate's test of earnings, achieving a score of 0 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's running ahead of 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.