Safe and Sound

SOUTHERN CHAUTAUQUA

Lakewood, NY
3
Star Rating
SOUTHERN CHAUTAUQUA is an NCUA-insured credit union started in 1954 and currently headquartered in Lakewood, NY. As of December 31, 2017, the credit union held assets of $79.3 million.

Members have $64.2 million on deposit tended by 46 full-time employees. With that footprint, the credit union holds loans and leases worth $64.2 million. Its 15,789 members currently have $70.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SOUTHERN CHAUTAUQUA exhibited a generally satisfactory condition, earning 3 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 grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial resilience, capital is useful. It acts as a bulwark against losses and affords protection for members during times of financial trouble for the credit union. When it comes to safety and soundness, more capital is better.

SOUTHERN CHAUTAUQUA received a score of 6 out of a possible 30 points on our test to measure capital adequacy, lower than the national average of 15.65.

SOUTHERN CHAUTAUQUA had a capitalization ratio of 6.00 percent in our test, below the average for all credit unions, suggesting that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid loans.

Having lots of these types of assets means a credit union may eventually have to use capital to absorb losses, shrinking 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, reducing earnings and increasing the risk of a failure in the future.

SOUTHERN CHAUTAUQUA scored below the national average of 38.09 on Bankrate's asset quality test, racking up 32 out of a possible 40 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 greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance affects its long-term survivability. Earnings may be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, potentially making the credit union better prepared to withstand economic trouble. Credit unions that are losing money, however, have less ability to do those things.

On Bankrate's earnings test, SOUTHERN CHAUTAUQUA scored 10 out of a possible 30, below the national average of 10.11.

One indication that the credit union 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.