Safe and Sound

TOWN OF HEMPSTEAD EMPLOYEES

North Baldwin, NY
1
Star Rating
TOWN OF HEMPSTEAD EMPLOYEES is a North Baldwin, NY-based, NCUA-insured credit union founded in 1963. Regulatory filings show the credit union having assets of $123.2 million, as of December 31, 2017.

Members have $65.1 million on deposit tended by 19 full-time employees. With that footprint, the credit union holds loans and leases worth $65.1 million. Its 9,382 members currently have $118.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TOWN OF HEMPSTEAD EMPLOYEES exhibited a significantly below-average condition, earning 1 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three major criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and provides protection for members during times of economic trouble for the credit union. It follows then that when it comes to measuring an a credit union's financial fortitude, capital is important. From a safety and soundness perspective, the higher the capital, the better.

TOWN OF HEMPSTEAD EMPLOYEES scored below the national average of 15.65 on our test to measure capital adequacy, racking up 0 out of a possible 30 points.

Asset Quality Score

This test's purpose is to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as past-due mortgages.

A credit union with large numbers of these types of assets could eventually be required to use capital to cover losses, reducing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in reduced earnings and potentially more risk of a failure in the future.

On Bankrate's asset quality test, TOWN OF HEMPSTEAD EMPLOYEES scored 24 out of a possible 40 points, less than the national average of 38.09 points.

TOWN OF HEMPSTEAD EMPLOYEES's ratio of problem assets was 0.00 percent in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money affects its safety and soundness. A credit union can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. Obviously, credit unions that are losing money are less able to do those things.

TOWN OF HEMPSTEAD EMPLOYEES fell behind the national average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

TOWN OF HEMPSTEAD EMPLOYEES had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign 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.