Safe and Sound

BURLINGTON MUNICIPAL EMPLOYEES

BURLINGTON, MA
3
Star Rating
BURLINGTON MUNICIPAL EMPLOYEES is an NCUA-insured credit union started in 1962 and currently headquartered in BURLINGTON, MA. As of December 31, 2017, the credit union had assets of $9.7 million.

With 2 full-time employees, the credit union holds loans and leases worth $4.0 million. Its 1,477 members currently have $8.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BURLINGTON MUNICIPAL EMPLOYEES exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is crucial. It works as a bulwark against losses and affords protection for members when a credit union is experiencing economic instability. From a safety and soundness perspective, more capital is preferred.

BURLINGTON MUNICIPAL EMPLOYEES received a score of 6 out of a possible 30 points on our test to measure capital adequacy, failing to reach the national average of 15.65.

BURLINGTON MUNICIPAL EMPLOYEES appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 6.00 percent in our test, worse than the average for all credit unions.

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 troubled assets, such as past-due loans.

Having a large number of these types of assets could eventually force a credit union to use capital to cover losses, decreasing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, resulting in depressed earnings and potentially more risk of a future failure.

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

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, potentially making the credit union more resilient in times of trouble. Conversely, losses reduce a credit union's ability to do those things.

BURLINGTON MUNICIPAL EMPLOYEES underperformed the average on Bankrate's test of earnings, achieving a score of 2 out of a possible 30.

One indication that BURLINGTON MUNICIPAL EMPLOYEES is outperforming its peers in this area was its earnings ratio of 0.00 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.