Safe and Sound

CONNECTICUT TRANSIT

HARTFORD, CT
1
Star Rating
Founded in 1937, CONNECTICUT TRANSIT is an NCUA-insured credit union based in HARTFORD, CT. As of December 31, 2017, the credit union held assets of $904,036.

The credit union has amassed loans and leases worth $598,334. Its 650 members currently have $839,690 in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CONNECTICUT TRANSIT exhibited a significantly below-average condition, earning 1 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is valuable. It works as a bulwark against losses and provides protection for members when a credit union is struggling financially. When it comes to safety and soundness, more capital is better.

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

CONNECTICUT TRANSIT's capitalization ratio of 4.00 percent in our test was less than the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's loan loss reserves and overall capitalization could be affected by problem assets, such as unpaid mortgages.

Having extensive holdings of these kinds of assets may eventually force a credit union to use capital to cover losses, reducing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, diminishing earnings and elevating the chances of a future failure.

CONNECTICUT TRANSIT fell short of the national average of 38.09 on Bankrate's test of asset quality, racking up 24 out of a possible 40 points .

The credit union's ratio of problem assets was 0.00 percent in our test, less than the national average and suggestive 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. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, likely making the credit union better prepared to withstand financial trouble. Credit unions that are losing money, however, have less ability to do those things.

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

One indication that CONNECTICUT TRANSIT 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.