Safe and Sound

BOSTON CUSTOMS

Boston, MA
3
Star Rating
Founded in 1935, BOSTON CUSTOMS is an NCUA-insured credit union based in Boston, MA. Regulatory filings show the credit union having assets of $2.5 million, as of December 31, 2017.

The credit union currently holds loans and leases worth $860,996. BOSTON CUSTOMS's 315 members currently have $2.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BOSTON CUSTOMS exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three important criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and as protection for members when a credit union is struggling financially. It follows then that an institution's level of capital is a crucial measurement of its financial strength. When it comes to safety and soundness, the higher the capital, the better.

BOSTON CUSTOMS racked up 16 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, beating the national average of 15.65.

BOSTON CUSTOMS had a capitalization ratio of 16.00 percent in our test, equal to the average for all credit unions, suggesting that it's running neck and neck with its peers.

Asset Quality Score

Bankrate uses this test to estimate the impact of troubled assets, such as unpaid mortgages, on the credit union's loan loss reserves and overall capitalization.

A credit union with large numbers of these types of assets could eventually have to use capital to cover losses, shrinking its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, diminishing earnings and increasing the chances of a failure in the future.

On Bankrate's test of asset quality, BOSTON CUSTOMS scored 40 out of a possible 40 points, above the national average of 38.09 points.

Earnings score

A credit union's profitability affects its long-term survivability. 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 more resilient in tough times. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's test of earnings, BOSTON CUSTOMS scored 0 out of a possible 30, less than the national average of 10.11.

BOSTON CUSTOMS had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's doing better than 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.