Safe and Sound

STEWART'S

SARATOGA SPRING, NY
4
Star Rating
SARATOGA SPRING, NY-based STEWART'S is an NCUA-insured credit union started in 1983. Regulatory filings show the credit union having $20.1 million in assets, as of December 31, 2017.

Members have $6.0 million on deposit tended by 4 full-time employees. With that footprint, the credit union holds loans and leases worth $6.0 million. Its 2,839 members currently have $18.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, STEWART'S 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 major criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and affords protection for members during periods of economic trouble for the credit union. Therefore, a credit union's level of capital is a valuable measurement of its financial strength. From a safety and soundness perspective, the more capital, the better.

On our test to measure capital adequacy, STEWART'S received a score of 6 out of a possible 30 points, coming in below the national average of 15.65.

STEWART'S's capitalization ratio of 6.00 percent in our test was below the average for all credit unions, an indication that it's less well prepared for financial trouble than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as past-due loans.

Having lots of these kinds of assets may 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 no longer earning interest for the credit union, decreasing earnings and elevating the chances of a future failure.

STEWART'S scored 40 out of a possible 40 points on Bankrate's asset quality test, exceeding the national average of 38.09.

STEWART'S's ratio of problem assets was 0.00 percent in our test, less than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. A credit union can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, likely making the credit union better able to withstand financial shocks. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, STEWART'S scored 18 out of a possible 30, better than the national average of 10.11.

One sign that STEWART'S is outperforming 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.