Safe and Sound

FRANKLIN-SOMERSET

SKOWHEGAN, ME
5
Star Rating
FRANKLIN-SOMERSET is an NCUA-insured credit union started in 1962 and currently headquartered in MADISON, ME. The credit union has assets of $88.0 million, according to December 31, 2017, regulatory filings.

Thanks to the work of 26 full-time employees, the credit union has amassed loans and leases worth $57.9 million. FRANKLIN-SOMERSET's 10,690 members currently have $76.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, FRANKLIN-SOMERSET exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three major criteria Bankrate used to score U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and provides protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial resilience, capital is valuable. From a safety and soundness perspective, the higher the capital, the better.

FRANKLIN-SOMERSET scored above the national average of 15.65 points on our test to measure capital adequacy, scoring 16 out of a possible 30 points.

FRANKLIN-SOMERSET's capitalization ratio of 16.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to determine the impact of troubled assets, such as unpaid loans, on the credit union's capitalization and allocated loan loss reserves.

A credit union with a large number of these types of assets may eventually be forced to use capital to absorb losses, diminishing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, reducing earnings and increasing the risk of a future failure.

FRANKLIN-SOMERSET fell short of the national average of 38.09 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

Troubled assets made up 0.00 percent of the credit union's total assets in our test, below the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability affects its long-term survivability. Earnings can be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, likely making the credit union better able to withstand financial shocks. Conversely, losses reduce a credit union's ability to do those things.

FRANKLIN-SOMERSET scored 18 out of a possible 30 on Bankrate's earnings test, above the national average of 10.11.

One indication that FRANKLIN-SOMERSET 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.