Safe and Sound

CITY OF BOSTON

BOSTON, MA
4
Star Rating
BOSTON, MA-based CITY OF BOSTON is an NCUA-insured credit union founded in 1915. Regulatory filings show the credit union having assets of $384.1 million, as of December 31, 2017.

Members have $304.5 million on deposit tended by 81 full-time employees. With that footprint, the credit union holds loans and leases worth $304.5 million. CITY OF BOSTON's 25,247 members currently have $295.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CITY OF BOSTON exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three key 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 works as a cushion against losses and affords protection for members during times of economic trouble for the credit union. It follows then that when it comes to measuring an a credit union's financial stability, capital is crucial. From a safety and soundness perspective, more capital is better.

CITY OF BOSTON beat out the national average of 15.65 points on our test to measure capital adequacy, receiving a score of 16 out of a possible 30 points.

CITY OF BOSTON'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 try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid loans.

Having large numbers of these kinds of assets suggests a credit union may eventually have to use capital to absorb losses, cutting down on its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, pushing down earnings and increasing the risk of a future failure.

CITY OF BOSTON fell short of the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

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 earnings performance affects its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand economic shocks. Credit unions that are losing money, however, have less ability to do those things.

CITY OF BOSTON scored 4 out of a possible 30 on Bankrate's earnings test, falling short of the national average of 10.11.

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