Safe and Sound

EVERETT

EVERETT, MA
4
Star Rating
Founded in 1926, EVERETT is an NCUA-insured credit union based in EVERETT, MA. As of December 31, 2017, the credit union held assets of $48.1 million.

With 9 full-time employees, the credit union holds loans and leases worth $30.5 million. EVERETT's 4,201 members currently have $40.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, EVERETT exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three major criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of an institution's financial strength. It acts as a cushion against losses and affords protection for members when a credit union is struggling financially. From a safety and soundness perspective, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, EVERETT racked up 18 out of a possible 30 points, above the national average of 15.65.

EVERETT appears to be stronger than its peers, with a capitalization ratio of 18.00 percent in our test, better than the average for all credit unions.

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 past-due loans.

A credit union with lots of these types of assets could eventually be required to use capital to cover losses, reducing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, decreasing earnings and elevating the risk of a failure in the future.

On Bankrate's test of asset quality, EVERETT scored 40 out of a possible 40 points, above the national average of 38.09 points.

The credit union's ratio of troubled assets was 0.00 percent in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand financial shocks. However, credit unions that are losing money are less able to do those things.

EVERETT fell behind the national average on Bankrate's earnings test, achieving a score of 8 out of a possible 30.

One indication that the credit union is running ahead of its peers in this area was its earnings ratio of 0.00 percent in our test, above 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.