Safe and Sound

HAMILTON

NOVATO, CA
4
Star Rating
NOVATO, CA-based HAMILTON is an NCUA-insured credit union founded in 1954. The credit union holds $21.8 million in assets, according to June 30, 2017, regulatory filings.

Thanks to the work of 4 full-time employees, the credit union has amassed loans and leases worth $8.7 million. Its 1,586 members currently have $18.9 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, HAMILTON exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three important criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is valuable. It works as a bulwark against losses and provides protection for members during times of financial instability for the credit union. When it comes to safety and soundness, more capital is better.

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

HAMILTON's capitalization ratio of 13.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

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

Having large numbers of these kinds of assets suggests a credit union may have to use capital to cover 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, reducing earnings and increasing the chances of a future failure.

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

HAMILTON's ratio of problem assets was 2.00 percent in our test, below the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money has an effect on its long-term survivability. Earnings may be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in tough times. Conversely, losses reduce a credit union's ability to do those things.

On Bankrate's test of earnings, HAMILTON scored 0 out of a possible 30, failing to reach the national average of 10.31.

HAMILTON had an earnings ratio of -5.00 percent in our test, less than the average for all credit unions, suggesting that it's underperforming 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.