Safe and Sound

ST. JOHNS BUFFALO

BUFFALO, NY
2
Star Rating
BUFFALO, NY-based ST. JOHNS BUFFALO is an NCUA-insured credit union founded in 1952. Regulatory filings show the credit union having $4.3 million in assets, as of December 31, 2017.

Members have $2.7 million on deposit tended by 2 full-time employees. With that footprint, the credit union has amassed loans and leases worth $2.7 million. Its 2,400 members currently have $3.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ST. JOHNS BUFFALO 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 evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of a credit union's financial fortitude. It acts as a bulwark against losses and as protection for members when a credit union is struggling financially. When it comes to safety and soundness, the higher the capital, the better.

ST. JOHNS BUFFALO fell short of the national average of 15.65 on our test to measure capital adequacy, achieving a score of 10 out of a possible 30 points.

ST. JOHNS BUFFALO had a capitalization ratio of 10.00 percent in our test, lower than the average for all credit unions, suggesting that it could be less resilient in a crisis than its peers.

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 troubled assets, such as unpaid mortgages.

Having large numbers of these kinds of assets could eventually require a credit union 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 thus aren't earning money, pushing down earnings and elevating the chances of a failure in the future.

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

A below-average ratio of troubled 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 long-term survivability. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, potentially making the credit union better able to withstand financial shocks. Conversely, losses lessen a credit union's ability to do those things.

On Bankrate's test of earnings, ST. JOHNS BUFFALO scored 2 out of a possible 30, failing to reach the national average of 10.11.

ST. JOHNS BUFFALO had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign 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.