Safe and Sound

CRESCENT

BROCKTON, MA
4
Star Rating
CRESCENT is an NCUA-insured credit union started in 1919 and currently based in BROCKTON, MA. The credit union holds assets of $437.6 million, according to June 30, 2017, regulatory filings.

Thanks to the work of 91 full-time employees, the credit union currently holds loans and leases worth $366.1 million. Its 47,870 members currently have $328.2 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, CRESCENT exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three major criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and provides protection for members when a credit union is experiencing financial trouble. Therefore, when it comes to measuring an a credit union's financial strength, capital is valuable. From a safety and soundness perspective, the more capital, the better.

CRESCENT scored 18 out of a possible 30 points on our test to measure capital adequacy, beating out the national average of 15.26.

CRESCENT's capitalization ratio of 14.00 percent in our test was above the average for all credit unions, an indication that it's on more solid financial footing 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 troubled assets, such as past-due mortgages.

Having extensive holdings of these types of assets could eventually force a credit union to use capital to absorb losses, shrinking its cushion of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, decreasing earnings and elevating the risk of a future failure.

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

Troubled assets made up 6.00 percent of CRESCENT's total assets in our test, lower than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or use them to address problematic loans, potentially making the credit union better prepared to withstand economic trouble. However, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, CRESCENT scored 10 out of a possible 30, lower than the national average of 10.31.

One indication that CRESCENT is running ahead of its peers in this area was its earnings ratio of 4.00 percent in our test, above 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.