Safe and Sound

CONNECTICUT COMMUNITY

Pawcatuck, CT
2
Star Rating
Pawcatuck, CT-based CONNECTICUT COMMUNITY is an NCUA-insured credit union founded in 1950. The credit union has assets of $20.2 million, according to December 31, 2017, regulatory filings.

Thanks to the work of 8 full-time employees, the credit union holds loans and leases worth $9.1 million. CONNECTICUT COMMUNITY's 3,446 members currently have $18.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CONNECTICUT COMMUNITY exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three key criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members when a credit union is experiencing financial trouble. It follows then that an institution's level of capital is a crucial measurement of its financial resilience. When it comes to safety and soundness, the more capital, the better.

CONNECTICUT COMMUNITY received a score of 4 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, falling short of the national average of 15.65.

CONNECTICUT COMMUNITY's capitalization ratio of 4.00 percent in our test was below the average for all credit unions, a sign that it could be less resilient in a crisis than its peers.

Asset Quality Score

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

Having extensive holdings of these types of assets could eventually force a credit union to use capital to absorb losses, reducing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, diminishing earnings and increasing the chances of a future failure.

CONNECTICUT COMMUNITY scored 40 out of a possible 40 points on Bankrate's asset quality test, beating out the national average of 38.09.

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 superior financial strength compared to 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, expanding its capital buffer, or use them to address problematic loans, likely making the credit union better prepared to withstand financial trouble. Credit unions that are losing money, however, are less able to do those things.

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

One indication that CONNECTICUT COMMUNITY is running ahead of 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.