Safe and Sound

CONNECTICUT LABOR DEPT

Wethersfield, CT
4
Star Rating
CONNECTICUT LABOR DEPT is an NCUA-insured credit union started in 1939 and currently based in Wethersfield, CT. As of December 31, 2017, the credit union held assets of $12.9 million.

With 2 full-time employees, the credit union has amassed loans and leases worth $3.7 million. CONNECTICUT LABOR DEPT's 1,640 members currently have $11.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CONNECTICUT LABOR DEPT exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three major criteria Bankrate used to score American credit unions.

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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. Therefore, when it comes to measuring an a credit union's financial stability, capital is key. From a safety and soundness perspective, the more capital, the better.

CONNECTICUT LABOR DEPT scored 22 out of a possible 30 points on our test to measure capital adequacy, beating out the national average of 15.65.

CONNECTICUT LABOR DEPT appears to be more resilient than its peers, with a capitalization ratio of 22.00 percent in our test, higher than the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the impact of problem assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

Having lots of these kinds of assets means a credit union could eventually have to use capital to cover losses, decreasing its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, pushing down earnings and elevating the risk of a failure in the future.

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

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 earning money affects its long-term survivability. Earnings may be retained by the credit union, boosting its capital cushion, or be used to deal with problematic loans, potentially making the credit union better able to withstand financial shocks. Losses, on the other hand, take away from a credit union's ability to do those things.

CONNECTICUT LABOR DEPT scored 4 out of a possible 30 on Bankrate's earnings test, less than the national average of 10.11.

CONNECTICUT LABOR DEPT had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, an indication that it's beating 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.