Safe and Sound

SLOAN PUBLIC SCHOOLS

CHEEKTOWAGA, NY
4
Star Rating
CHEEKTOWAGA, NY-based SLOAN PUBLIC SCHOOLS is an NCUA-insured credit union started in 1970. The credit union has $2.1 million in assets, according to December 31, 2017, regulatory filings.

SLOAN PUBLIC SCHOOLS's 489 members currently have $1.9 million in shares with the credit union. With that footprint, the credit union has amassed loans and leases worth $1.7 million.

Overall, Bankrate believes that, as of December 31, 2017, SLOAN PUBLIC SCHOOLS exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three important criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of an institution's financial resilience. It works as a bulwark against losses and affords protection for members when a credit union is struggling financially. When looking at safety and soundness, more capital is better.

SLOAN PUBLIC SCHOOLS came in below the national average of 15.65 on our test to measure capital adequacy, racking up 8 out of a possible 30 points.

SLOAN PUBLIC SCHOOLS appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 8.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

This test's purpose is to estimate 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 loans.

A credit union with a large number of these types of assets could 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 reduced earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, SLOAN PUBLIC SCHOOLS scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, likely making the credit union more resilient in times of trouble. However, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, SLOAN PUBLIC SCHOOLS scored 18 out of a possible 30, beating out the national average of 10.11.

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