Safe and Sound

ST. JEAN'S

LYNN, MA
4
Star Rating
ST. JEAN'S is an NCUA-insured credit union started in 1910 and currently headquartered in LYNN, MA. Regulatory filings show the credit union having $221.5 million in assets, as of June 30, 2017.

Members have $169.9 million on deposit tended by 46 full-time employees. With that footprint, the credit union holds loans and leases worth $169.9 million. Its 18,662 members currently have $191.5 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, ST. JEAN'S 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 key criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members when a credit union is experiencing financial trouble. Therefore, when it comes to measuring an an institution's financial strength, capital is valuable. When looking at safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, ST. JEAN'S received a score of 10 out of a possible 30 points, less than the national average of 15.26.

ST. JEAN'S had a capitalization ratio of 10.00 percent in our test, below the average for all credit unions, suggesting that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having extensive holdings of these kinds of assets could eventually require a credit union to use capital to cover losses, shrinking its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, pushing down earnings and increasing the chances of a failure in the future.

On Bankrate's test of asset quality, ST. JEAN'S scored 40 out of a possible 40 points, beating the national average of 38.15 points.

Troubled assets made up 4.00 percent of the credit union's total assets in our test, below 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 has an effect on its safety and soundness. Earnings may be retained by the credit union, increasing its capital cushion, or be used to address problematic loans, likely making the credit union more resilient in times of trouble. Losses, on the other hand, lessen a credit union's ability to do those things.

On Bankrate's test of earnings, ST. JEAN'S scored 10 out of a possible 30, less than the national average of 10.31.

The credit union had an earnings ratio of 5.00 percent in our test, above the average for all credit unions, an indication that it's outperforming 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.