Safe and Sound

VARICK MEMORIAL

Uniondale, NY
1
Star Rating
VARICK MEMORIAL is a Uniondale, NY-based, NCUA-insured credit union dating back to 1997. As of December 31, 2017, the credit union held assets of $309,953.

The credit union currently holds loans and leases worth $41,255. Its 178 members currently have $278,842 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, VARICK MEMORIAL exhibited a significantly below-average condition, earning 1 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three important criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of a credit union's financial strength. It acts as a cushion against losses and affords protection for members when a credit union is struggling financially. When it comes to safety and soundness, the more capital, the better.

VARICK MEMORIAL came in below the national average of 15.65 on our test to measure capital adequacy, scoring 8 out of a possible 30 points.

VARICK MEMORIAL had a capitalization ratio of 8.00 percent in our test, lower than the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as past-due loans.

A credit union with lots of these kinds of assets may eventually have to use capital to absorb losses, decreasing 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 money, resulting in reduced earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, VARICK MEMORIAL scored 12 out of a possible 40 points, less than the national average of 38.09 points.

VARICK MEMORIAL's ratio of problem assets was 1.00 percent in our test, identical to the national average.

Earnings score

A credit union's earnings performance affects its long-term survivability. Earnings can be retained by the credit union, giving a boost to its capital cushion, or be used to deal with problematic loans, likely making the credit union better prepared to withstand financial shocks. Conversely, losses take away from a credit union's ability to do those things.

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

VARICK MEMORIAL had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's running ahead of 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.