Safe and Sound

FIVE COUNTY

Bath, ME
4
Star Rating
Founded in 1956, FIVE COUNTY is an NCUA-insured credit union based in Bath, ME. Regulatory filings show the credit union having $243.2 million in assets, as of December 31, 2017.

With 113 full-time employees, the credit union currently holds loans and leases worth $173.4 million. Its 27,257 members currently have $198.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FIVE COUNTY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three key criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of a credit union's financial strength. It acts as a buffer against losses and as protection for members when a credit union is experiencing financial instability. When looking at safety and soundness, the more capital, the better.

FIVE COUNTY fell short of the national average of 15.65 on our test to measure capital adequacy, receiving a score of 8 out of a possible 30 points.

FIVE COUNTY had a capitalization ratio of 8.00 percent in our test, below the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

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

Having lots of these types of assets means a credit union could have to use capital to absorb losses, decreasing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning interest for the credit union, resulting in diminished earnings and potentially more risk of a failure in the future.

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

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance affects its safety and soundness. A credit union can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, likely making the credit union better prepared to withstand economic shocks. Credit unions that are losing money, however, have less ability to do those things.

FIVE COUNTY scored 18 out of a possible 30 on Bankrate's test of earnings, beating the national average of 10.11.

One indication that FIVE COUNTY is doing better than 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.