Safe and Sound

FINEX

East Hartford, CT
3
Star Rating
FINEX is an East Hartford, CT-based, NCUA-insured credit union founded in 1938. Regulatory filings show the credit union having assets of $78.6 million, as of December 31, 2017.

Members have $59.1 million on deposit tended by 24 full-time employees. With that footprint, the credit union currently holds loans and leases worth $59.1 million. FINEX's 9,302 members currently have $63.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FINEX 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 key criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and provides protection for members during periods of economic trouble for the credit union. It follows then that a credit union's level of capital is a useful measurement of its financial strength. From a safety and soundness perspective, the more capital, the better.

FINEX fell below the national average of 15.65 on our test to measure capital adequacy, achieving a score of 8 out of a possible 30 points.

FINEX had a capitalization ratio of 8.00 percent in our test, below the average for all credit unions, an indication that it could be less resilient in a crisis than its peers.

Asset Quality Score

Bankrate uses this test to determine the effect of problem assets, such as unpaid mortgages, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with extensive holdings of these types of assets may eventually be required to use capital to absorb losses, decreasing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a future failure.

FINEX scored 40 out of a possible 40 points on Bankrate's asset quality test, beating the national average of 38.09.

FINEX's ratio of problem assets was 0.00 percent in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's earnings performance affects its long-term survivability. Earnings may be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, potentially making the credit union more resilient in tough times. Credit unions that are losing money, however, have less ability to do those things.

FINEX fell short of the national average on Bankrate's earnings test, achieving a score of 2 out of a possible 30.

One sign that FINEX is running ahead of 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.