Safe and Sound

UPSTATE MILK EMPLOYEES

Cheektowaga, NY
3
Star Rating
UPSTATE MILK EMPLOYEES is a Cheektowaga, NY-based, NCUA-insured credit union that opened its doors in 1971. As of December 31, 2017, the credit union had assets of $2.8 million.

The credit union currently holds loans and leases worth $1.0 million. UPSTATE MILK EMPLOYEES's 566 members currently have $2.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, UPSTATE MILK EMPLOYEES exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three important criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial fortitude, capital is useful. It works as a cushion against losses and affords protection for members when a credit union is struggling financially. When it comes to safety and soundness, more capital is preferred.

UPSTATE MILK EMPLOYEES came in below the national average of 15.65 on our test to measure capital adequacy, achieving a score of 8 out of a possible 30 points.

UPSTATE MILK EMPLOYEES's capitalization ratio of 8.00 percent in our test was lower than the average for all credit unions, an indication that it's on less solid financial footing than its peers.

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 unpaid loans.

Having large numbers of these kinds of assets suggests a credit union may have to use capital to absorb losses, shrinking its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, pushing down earnings and elevating the chances of a failure in the future.

UPSTATE MILK EMPLOYEES scored 36 out of a possible 40 points on Bankrate's asset quality test, less than the national average of 38.09.

The credit union'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 safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. Losses, on the other hand, lessen a credit union's ability to do those things.

UPSTATE MILK EMPLOYEES scored 4 out of a possible 30 on Bankrate's earnings test, below the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, above 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.