Safe and Sound

COMMONWEALTH UTILITIES EMPLOYEES

Marion, MA
5
Star Rating
Founded in 1926, COMMONWEALTH UTILITIES EMPLOYEES is an NCUA-insured credit union based in Marion, MA. The credit union holds $41.3 million in assets, according to December 31, 2017, regulatory filings.

Members have $10.5 million on deposit tended by 6 full-time employees. With that footprint, the credit union has amassed loans and leases worth $10.5 million. COMMONWEALTH UTILITIES EMPLOYEES's 1,911 members currently have $34.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, COMMONWEALTH UTILITIES EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three key criteria Bankrate used to grade U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of a credit union's financial resilience. It acts as a buffer against losses and affords protection for members when a credit union is experiencing economic trouble. When it comes to safety and soundness, the more capital, the better.

COMMONWEALTH UTILITIES EMPLOYEES scored 22 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, beating out the national average of 15.65.

COMMONWEALTH UTILITIES EMPLOYEES's capitalization ratio of 22.00 percent in our test was better than the average for all credit unions, a sign that it's stronger than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of troubled assets, such as past-due mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having large numbers of these kinds of assets could eventually force a credit union to use capital to cover losses, decreasing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, reducing earnings and elevating the chances of a failure in the future.

COMMONWEALTH UTILITIES EMPLOYEES scored 40 out of a possible 40 points on Bankrate's asset quality test, 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 superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. Earnings can be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, likely making the credit union better able to withstand financial shocks. Credit unions that are losing money, however, have less ability to do those things.

COMMONWEALTH UTILITIES EMPLOYEES received below-average marks on Bankrate's test of earnings, achieving a score of 8 out of a possible 30.

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, 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.