Safe and Sound

CAMBRIDGE MUNICIPAL EMPLOYEES

CAMBRIDGE, MA
4
Star Rating
CAMBRIDGE, MA-based CAMBRIDGE MUNICIPAL EMPLOYEES is an NCUA-insured credit union founded in 1939. As of December 31, 2017, the credit union had assets of $9.7 million.

With 2 full-time employees, the credit union currently holds loans and leases worth $2.1 million. CAMBRIDGE MUNICIPAL EMPLOYEES's 1,565 members currently have $7.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CAMBRIDGE MUNICIPAL EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three key criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of an institution's financial resilience. It acts as a buffer against losses and as protection for members when a credit union is experiencing financial trouble. When looking at safety and soundness, more capital is better.

CAMBRIDGE MUNICIPAL EMPLOYEES did better than the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, scoring 30 out of a possible 30 points.

CAMBRIDGE MUNICIPAL EMPLOYEES appears to be stronger 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 estimate the effect of troubled assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.

A credit union with lots of these kinds of assets may eventually be forced 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, diminishing earnings and elevating the risk of a failure in the future.

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

Earnings score

How successful a credit union is at making money affects its safety and soundness. 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 financial shocks. Conversely, losses reduce a credit union's ability to do those things.

CAMBRIDGE MUNICIPAL EMPLOYEES scored 0 out of a possible 30 on Bankrate's test of earnings, lower than the national average of 10.11.

One indication that the credit union is doing better than its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.