Safe and Sound

BELLWETHER COMMUNITY

MANCHESTER, NH
4
Star Rating
BELLWETHER COMMUNITY is an NCUA-insured credit union founded in 1921 and currently based in MANCHESTER, NH. The credit union holds assets of $490.3 million, according to June 30, 2017, regulatory filings.

Thanks to the work of 84 full-time employees, the credit union has amassed loans and leases worth $344.0 million. Its 34,757 members currently have $336.7 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, BELLWETHER COMMUNITY exhibited a good condition, earning 4 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 score American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for members when a credit union is experiencing financial instability. It follows then that a credit union's level of capital is a key measurement of its financial fortitude. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, BELLWETHER COMMUNITY received a score of 10 out of a possible 30 points, failing to reach the national average of 15.26.

BELLWETHER COMMUNITY appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 10.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to estimate the impact of problem assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with large numbers of these kinds of assets may eventually be required to use capital to absorb losses, reducing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, resulting in diminished earnings and potentially more risk of a failure in the future.

On Bankrate's test of asset quality, BELLWETHER COMMUNITY scored 40 out of a possible 40 points, exceeding the national average of 38.15 points.

Troubled assets made up 2.00 percent of the credit union's total assets in our test, lower than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. Earnings may be retained by the credit union, expanding its capital buffer, or be used to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, BELLWETHER COMMUNITY scored 6 out of a possible 30, less than the national average of 10.31.

One sign that the credit union is running ahead of its peers in this area was its earnings ratio of 3.00 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.