Safe and Sound

SPERRY ASSOCIATES

GARDEN CITY PAR, NY
2
Star Rating
SPERRY ASSOCIATES is an NCUA-insured credit union founded in 1936 and currently based in GARDEN CITY PAR, NY. As of December 31, 2017, the credit union held assets of $264.0 million.

Members have $174.3 million on deposit tended by 35 full-time employees. With that footprint, the credit union currently holds loans and leases worth $174.3 million. Its 15,618 members currently have $244.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SPERRY ASSOCIATES exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three major criteria Bankrate used to score American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of a credit union's financial fortitude. It acts as a cushion against losses and as protection for members when a credit union is struggling financially. From a safety and soundness perspective, the more capital, the better.

SPERRY ASSOCIATES fell short of the national average of 15.65 on our test to measure capital adequacy, racking up 6 out of a possible 30 points.

SPERRY ASSOCIATES appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 6.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to estimate the effect of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having large numbers of these types of assets means a credit union could have to use capital to absorb 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.

SPERRY ASSOCIATES fell below the national average of 38.09 on Bankrate's test of asset quality, 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, lower than the national average and potentially indicative of superior financial strength compared to 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, increasing its capital buffer, or be used to address problematic loans, likely making the credit union better prepared to withstand economic shocks. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's test of earnings, SPERRY ASSOCIATES scored 6 out of a possible 30, coming in below the national average of 10.11.

One indication that SPERRY ASSOCIATES is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.