Safe and Sound

UPSTATE TELCO

GLOVERSVILLE, NY
4
Star Rating
GLOVERSVILLE, NY-based UPSTATE TELCO is an NCUA-insured credit union started in 1956. The credit union holds $4.8 million in assets, according to December 31, 2017, regulatory filings.

The credit union currently holds loans and leases worth $1.2 million. Its 658 members currently have $4.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, UPSTATE TELCO exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of 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 works as a buffer against losses and as protection for members during periods of economic trouble for the credit union. Therefore, when it comes to measuring an a credit union's financial resilience, capital is useful. When looking at safety and soundness, the more capital, the better.

UPSTATE TELCO did better than the national average of 15.65 points on our test to measure capital adequacy, achieving a score of 22 out of a possible 30 points.

UPSTATE TELCO had a capitalization ratio of 22.00 percent in our test, higher than the average for all credit unions, suggesting that it could be more resilient in a crisis than its peers.

Asset Quality Score

This test is intended 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 lots of these kinds of assets means a credit union may have to use capital to absorb losses, reducing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, pushing down earnings and elevating the risk of a failure in the future.

UPSTATE TELCO did better than the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

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

Earnings score

A credit union's ability to earn money has an effect on its long-term survivability. Earnings can be retained by the credit union, giving a boost to its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in tough times. However, credit unions that are losing money are less able to do those things.

UPSTATE TELCO scored 0 out of a possible 30 on Bankrate's earnings test, below the national average of 10.11.

One indication that the credit union is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, higher than 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.