Safe and Sound

VAN CORTLANDT COOPERATIVE

BRONX, NY
NR
Star Rating
BRONX, NY-based VAN CORTLANDT COOPERATIVE is an NCUA-insured credit union started in 1936. As of December 31, 2017, the credit union had assets of $70.7 million.

Thanks to the work of 5 full-time employees, the credit union holds loans and leases worth $28.7 million. Its 3,377 members currently have $64.0 million in shares with the credit union.

Overall, Bankrate did not have enough information on this institution to give it a star rating. Keep reading for a breakdown of how the credit union faired 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 works as a bulwark against losses and as protection for members during periods of financial instability for the credit union. Therefore, an institution's level of capital is a useful measurement of its financial strength. From a safety and soundness perspective, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, VAN CORTLANDT COOPERATIVE received a score of 8 out of a possible 30 points, coming in below the national average of 15.65.

VAN CORTLANDT COOPERATIVE's capitalization ratio of 8.00 percent in our test was lower than the average for all credit unions, a sign that it's on less solid financial footing than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of troubled assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

A credit union with lots of these kinds of assets could eventually have to use capital to cover losses, decreasing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a future failure.

VAN CORTLANDT COOPERATIVE scored 0 out of a possible 40 points on Bankrate's test of asset quality, failing to reach the national average of 38.09.

VAN CORTLANDT COOPERATIVE's ratio of problem assets was 1.00 percent in our test, identical to the national average.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. A credit union can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, likely making the credit union more resilient in times of trouble. However, credit unions that are losing money have less ability to do those things.

VAN CORTLANDT COOPERATIVE scored 0 out of a possible 30 on Bankrate's earnings test, falling short of the national average of 10.11.

One indication that VAN CORTLANDT COOPERATIVE is beating 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.