Safe and Sound

STATE CS EMPLOYEES

WATERTOWN, NY
4
Star Rating
WATERTOWN, NY-based STATE CS EMPLOYEES is an NCUA-insured credit union started in 1964. Regulatory filings show the credit union having assets of $17.6 million, as of December 31, 2017.

Members have $12.3 million on deposit tended by 8 full-time employees. With that footprint, the credit union has amassed loans and leases worth $12.3 million. Its 2,179 members currently have $15.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, STATE CS EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three major criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and provides protection for members when a credit union is experiencing economic instability. It follows then that when it comes to measuring an a credit union's financial stability, capital is important. When looking at safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, STATE CS EMPLOYEES received a score of 14 out of a possible 30 points, less than the national average of 15.65.

STATE CS EMPLOYEES appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 14.00 percent in our test, less than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the effect of troubled assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

A credit union with lots of these types of assets may eventually be forced to use capital to absorb losses, reducing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, reducing earnings and increasing the risk of a future failure.

On Bankrate's test of asset quality, STATE CS EMPLOYEES scored 40 out of a possible 40 points, beating out the national average of 38.09 points.

A below-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. Earnings may be retained by the credit union, expanding its capital buffer, or be used to address problematic loans, likely making the credit union better able to withstand financial trouble. Conversely, losses lessen a credit union's ability to do those things.

STATE CS EMPLOYEES did below-average on Bankrate's test of earnings, achieving a score of 4 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 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.