Safe and Sound

BILLERICA MUNICIPAL EMPLOYEES

BILLERICA, MA
5
Star Rating
BILLERICA MUNICIPAL EMPLOYEES is an NCUA-insured credit union started in 1971 and currently headquartered in BILLERICA, MA. Regulatory filings show the credit union having assets of $14.3 million, as of December 31, 2017.

Members have $3.4 million on deposit tended by 2 full-time employees. With that footprint, the credit union has amassed loans and leases worth $3.4 million. Its 1,216 members currently have $11.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BILLERICA MUNICIPAL EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a look at how the credit union faired on the three important criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of an institution's financial fortitude. It acts as a buffer against losses and affords protection for members when a credit union is struggling financially. When looking at safety and soundness, the more capital, the better.

BILLERICA MUNICIPAL EMPLOYEES beat out the national average of 15.65 points on our test to measure capital adequacy, receiving a score of 30 out of a possible 30 points.

BILLERICA MUNICIPAL EMPLOYEES appears to be more resilient than its peers, with a capitalization ratio of 30.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the impact of problem assets, such as past-due loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with extensive holdings of these kinds of assets may eventually have to use capital to cover 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, decreasing earnings and elevating the chances of a future failure.

BILLERICA MUNICIPAL EMPLOYEES scored 40 out of a possible 40 points on Bankrate's test of asset quality, better than the national average of 38.09.

A lower-than-average ratio of problem assets of 0.00 percent in our test was potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, potentially making the credit union more resilient in tough times. Obviously, credit unions that are losing money are less able to do those things.

BILLERICA MUNICIPAL EMPLOYEES scored 2 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 10.11.

One indication that BILLERICA MUNICIPAL EMPLOYEES is doing better than 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.