Safe and Sound

FALL RIVER MUNICIPAL

FALL RIVER, MA
4
Star Rating
FALL RIVER, MA-based FALL RIVER MUNICIPAL is an NCUA-insured credit union started in 1930. The credit union has assets of $208.7 million, according to December 31, 2017, regulatory filings.

Members have $123.8 million on deposit tended by 43 full-time employees. With that footprint, the credit union currently holds loans and leases worth $123.8 million. FALL RIVER MUNICIPAL's 13,572 members currently have $149.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FALL RIVER MUNICIPAL 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 key criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for members during times of financial instability for the credit union. It follows then that an institution's level of capital is a key measurement of its financial fortitude. From a safety and soundness perspective, the higher the capital, the better.

On our test to measure capital adequacy, FALL RIVER MUNICIPAL received a score of 14 out of a possible 30 points, falling short of the national average of 15.65.

FALL RIVER MUNICIPAL appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 14.00 percent in our test, lower 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 mortgages.

A credit union with lots of these kinds of assets could eventually be required 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, pushing down earnings and increasing the chances of a future failure.

On Bankrate's asset quality test, FALL RIVER MUNICIPAL scored 40 out of a possible 40 points, beating out 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 safety and soundness. A credit union can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, likely making the credit union better prepared to withstand financial shocks. Losses, on the other hand, take away from a credit union's ability to do those things.

FALL RIVER MUNICIPAL received below-average marks on Bankrate's test of earnings, achieving a score of 4 out of a possible 30.

One indication that FALL RIVER MUNICIPAL is outperforming 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.