Safe and Sound

BROOKLINE MUNICIPAL

BROOKLINE, MA
4
Star Rating
BROOKLINE, MA-based BROOKLINE MUNICIPAL is an NCUA-insured credit union started in 1939. Regulatory filings show the credit union having $39.3 million in assets, as of December 31, 2017.

With 5 full-time employees, the credit union has amassed loans and leases worth $13.8 million. Its 2,722 members currently have $34.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BROOKLINE MUNICIPAL exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three important criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is essential. It acts as a bulwark against losses and as protection for members during periods of economic instability for the credit union. When looking at safety and soundness, the more capital, the better.

BROOKLINE MUNICIPAL achieved a score of 16 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, above the national average of 15.65.

BROOKLINE MUNICIPAL's capitalization ratio of 16.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

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

A credit union with lots of these kinds of assets may eventually be forced to use capital to cover losses, reducing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, decreasing earnings and elevating the risk of a future failure.

On Bankrate's asset quality test, BROOKLINE MUNICIPAL scored 40 out of a possible 40 points, beating out the national average of 38.09 points.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, less than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. Earnings can be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in tough times. Conversely, losses take away from a credit union's ability to do those things.

BROOKLINE MUNICIPAL underperformed the average on Bankrate's earnings test, achieving a score of 8 out of a possible 30.

BROOKLINE MUNICIPAL had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, an indication that it's running ahead of 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.