Safe and Sound

ATTLEBORO M E

ATTLEBORO, MA
3
Star Rating
ATTLEBORO M E is an ATTLEBORO, MA-based, NCUA-insured credit union dating back to 1964. The credit union holds $18.8 million in assets, according to December 31, 2017, regulatory filings.

With 4 full-time employees, the credit union has amassed loans and leases worth $4.4 million. Its 1,721 members currently have $16.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, ATTLEBORO M E exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three important criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members when a credit union is experiencing economic instability. Therefore, a credit union's level of capital is an important measurement of its financial strength. When it comes to safety and soundness, more capital is preferred.

ATTLEBORO M E fell short of the national average of 15.65 on our test to measure the adequacy of a credit union's capital, scoring 14 out of a possible 30 points.

ATTLEBORO M E's capitalization ratio of 14.00 percent in our test was worse than the average for all credit unions, an indication that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to estimate the effect of troubled assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having large numbers of these kinds of assets means a credit union could eventually have to use capital to absorb losses, reducing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, diminishing earnings and increasing the risk of a future failure.

ATTLEBORO M E scored 40 out of a possible 40 points on Bankrate's asset quality test, better than the national average of 38.09.

The credit union's ratio of problem assets was 0.00 percent in our test, lower than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. Earnings can be retained by the credit union, boosting its capital cushion, or be used to deal with problematic loans, likely making the credit union better able to withstand economic shocks. Conversely, losses lessen a credit union's ability to do those things.

ATTLEBORO M E did below-average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

One indication that the credit union is running ahead of its peers in this area was its earnings ratio of 0.00 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.