Safe and Sound

ACADIA

Fort Kent, ME
4
Star Rating
ACADIA is an NCUA-insured credit union founded in 1963 and currently based in Fort Kent, ME. Regulatory filings show the credit union having assets of $157.7 million, as of June 30, 2017.

With 43 full-time employees, the credit union has amassed loans and leases worth $119.1 million. Its 10,497 members currently have $134.8 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, ACADIA 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 important criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and as protection for members when a credit union is struggling financially. It follows then that when it comes to measuring an a credit union's financial stability, capital is crucial. From a safety and soundness perspective, the higher the capital, the better.

ACADIA scored above the national average of 15.26 points on our test to measure capital adequacy, scoring 20 out of a possible 30 points.

ACADIA's capitalization ratio of 14.00 percent in our test was higher than the average for all credit unions, suggesting that it's on more solid financial footing than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with lots of these types of assets could eventually be required to use capital to cover losses, diminishing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, diminishing earnings and increasing the chances of a failure in the future.

ACADIA scored 36 out of a possible 40 points on Bankrate's test of asset quality, below the national average of 38.15.

Troubled assets made up 11.00 percent of ACADIA's total assets in our test, higher than the national average and a potential cause for concern.

Earnings score

A credit union's earnings performance affects its safety and soundness. A credit union can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, likely making the credit union better prepared to withstand financial trouble. However, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, ACADIA scored 10 out of a possible 30, below the national average of 10.31.

ACADIA had an earnings ratio of 4.00 percent in our test, higher than the average for all credit unions, a sign 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.