Safe and Sound

CREDIT UNION OF THE BERKSHIRES

Pittsfield, MA
3
Star Rating
CREDIT UNION OF THE BERKSHIRES is a Pittsfield, MA-based, NCUA-insured credit union founded in 1939. The credit union holds $20.0 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 4 full-time employees, the credit union currently holds loans and leases worth $6.7 million. Its 1,898 members currently have $17.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, CREDIT UNION OF THE BERKSHIRES exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three important criteria Bankrate used to score American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and affords protection for members when a credit union is experiencing financial instability. Therefore, when it comes to measuring an a credit union's financial resilience, capital is valuable. When it comes to safety and soundness, the higher the capital, the better.

CREDIT UNION OF THE BERKSHIRES achieved a score of 18 out of a possible 30 points on our test to measure capital adequacy, above the national average of 15.65.

CREDIT UNION OF THE BERKSHIRES had a capitalization ratio of 18.00 percent in our test, above the average for all credit unions, an indication that it could have an easier time weathering financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to estimate the impact of troubled assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

Having lots of these types of assets may eventually require a credit union to use capital to cover losses, diminishing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning money, pushing down earnings and elevating the chances of a future failure.

On Bankrate's asset quality test, CREDIT UNION OF THE BERKSHIRES scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, lower than the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money 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, potentially making the credit union better prepared to withstand economic trouble. Credit unions that are losing money, however, are less able to do those things.

On Bankrate's test of earnings, CREDIT UNION OF THE BERKSHIRES scored 0 out of a possible 30, below the national average of 10.11.

One sign that CREDIT UNION OF THE BERKSHIRES is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, higher 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.