Safe and Sound

HANSCOM

Hanscom AFB, MA
4
Star Rating
Hanscom AFB, MA-based HANSCOM is an NCUA-insured credit union founded in 1953. As of June 30, 2017, the credit union had assets of $1.25 billion.

Members have $1.07 billion on deposit tended by 198 full-time employees. With that footprint, the credit union currently holds loans and leases worth $1.07 billion. Its 77,108 members currently have $1.11 billion in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, HANSCOM 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 key criteria Bankrate used to score American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of an institution's financial resilience. It acts as a bulwark against losses and as protection for members when a credit union is experiencing financial instability. From a safety and soundness perspective, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, HANSCOM received a score of 12 out of a possible 30 points, coming in below the national average of 15.26.

HANSCOM appears to be weaker 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

In this test, Bankrate tries to estimate the effect of troubled assets, such as past-due mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

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

HANSCOM did better than the national average of 38.15 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

HANSCOM's ratio of problem assets was 3.00 percent in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or use them to deal with problematic loans, likely making the credit union better able to withstand financial trouble. Conversely, losses lessen a credit union's ability to do those things.

On Bankrate's test of earnings, HANSCOM scored 16 out of a possible 30, exceeding the national average of 10.31.

One indication that HANSCOM is doing better than its peers in this area was its earnings ratio of 7.00 percent in our test, better 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.