Safe and Sound

UNION CONGREGATIONAL

New York, NY
5
Star Rating
UNION CONGREGATIONAL is a New York, NY-based, NCUA-insured credit union founded in 1948. As of December 31, 2017, the credit union had assets of $251,686.

Its 101 members currently have $185,604 in shares with the credit union. With that footprint, the credit union holds loans and leases worth $10,716.

Overall, Bankrate believes that, as of December 31, 2017, UNION CONGREGATIONAL exhibited a superior condition, earning a full 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 on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of a credit union's financial resilience. It works 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 more capital, the better.

UNION CONGREGATIONAL did better than the national average of 15.65 points on our test to measure capital adequacy, racking up 30 out of a possible 30 points.

UNION CONGREGATIONAL appears to be more well prepared for financial trouble than its peers, with a capitalization ratio of 30.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

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

Having a large number of these types of assets may eventually force a credit union to use capital to cover losses, cutting down on its buffer of equity. 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, reducing earnings and increasing the risk of a future failure.

UNION CONGREGATIONAL scored 40 out of a possible 40 points on Bankrate's asset quality test, above the national average of 38.09.

Earnings score

How successful a credit union is at making money affects its safety and soundness. Earnings may be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, likely making the credit union better prepared to withstand economic shocks. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, UNION CONGREGATIONAL scored 6 out of a possible 30, less than the national average of 10.11.

UNION CONGREGATIONAL had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, a sign that it's beating 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.