Safe and Sound

MAINE STATE

Augusta, ME
4
Star Rating
MAINE STATE is an NCUA-insured credit union started in 1935 and currently headquartered in Augusta, ME. Regulatory filings show the credit union having assets of $396.8 million, as of June 30, 2017.

With 70 full-time employees, the credit union currently holds loans and leases worth $242.8 million. Its 27,580 members currently have $345.6 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, MAINE STATE 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 major criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is important. It acts as a cushion against losses and as protection for members during periods of financial trouble for the credit union. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, MAINE STATE received a score of 14 out of a possible 30 points, less than the national average of 15.26.

MAINE STATE appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 12.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

This test is intended to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as unpaid loans.

Having lots of these kinds of assets may eventually force a credit union to use capital to absorb losses, reducing 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 diminished earnings and potentially more risk of a future failure.

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

Troubled assets made up 1.00 percent of MAINE STATE's total assets in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially making the credit union better able to withstand financial shocks. Losses, on the other hand, take away from a credit union's ability to do those things.

On Bankrate's test of earnings, MAINE STATE scored 12 out of a possible 30, beating the national average of 10.31.

One indication that the credit union is beating its peers in this area was its earnings ratio of 6.00 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.