Safe and Sound

WORKERS'

FITCHBURG, MA
4
Star Rating
WORKERS' is a FITCHBURG, MA-based, NCUA-insured credit union dating back to 1914. The credit union holds $1.60 billion in assets, according to June 30, 2017, regulatory filings.

With 247 full-time employees, the credit union has amassed loans and leases worth $1.14 billion. Its 94,863 members currently have $917.6 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, WORKERS' 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 major criteria Bankrate used to grade U.S. credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of an institution's financial strength. It works as a cushion against losses and affords protection for members when a credit union is struggling financially. From a safety and soundness perspective, the higher the capital, the better.

WORKERS' received a score of 12 out of a possible 30 points on our test to measure capital adequacy, below the national average of 15.26.

WORKERS' had a capitalization ratio of 10.00 percent in our test, less than the average for all credit unions, suggesting that it's weaker than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as past-due loans.

Having extensive holdings of these kinds of assets suggests a credit union may have to use capital to cover losses, reducing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in reduced earnings and potentially more risk of a future failure.

WORKERS' scored 40 out of a possible 40 points on Bankrate's test of asset quality, better than the national average of 38.15.

The credit union's ratio of problem assets was 3.00 percent in our test, less 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, increasing its capital cushion, or put them to work addressing problematic loans, likely making the credit union better able to withstand economic shocks. Losses, on the other hand, reduce a credit union's ability to do those things.

WORKERS' scored 14 out of a possible 30 on Bankrate's test of earnings, beating the national average of 10.31.

One sign that WORKERS' is outperforming 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.