Safe and Sound

GROTON MUNICIPAL EMPLOYEES

Groton, CT
2
Star Rating
GROTON MUNICIPAL EMPLOYEES is an NCUA-insured credit union started in 1956 and currently headquartered in Groton, CT. Regulatory filings show the credit union having $6.3 million in assets, as of December 31, 2017.

Members have $2.7 million on deposit tended by 3 full-time employees. With that footprint, the credit union currently holds loans and leases worth $2.7 million. Its 685 members currently have $5.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, GROTON MUNICIPAL EMPLOYEES exhibited a below-average condition, earning 2 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 score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of a credit union's financial fortitude. It acts as a cushion against losses and affords protection for members when a credit union is experiencing financial trouble. From a safety and soundness perspective, the more capital, the better.

On our test to measure capital adequacy, GROTON MUNICIPAL EMPLOYEES received a score of 8 out of a possible 30 points, less than the national average of 15.65.

GROTON MUNICIPAL EMPLOYEES had a capitalization ratio of 8.00 percent in our test, below the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by problem assets, such as unpaid mortgages.

A credit union with extensive holdings of these types of assets may eventually have to use capital to cover losses, cutting down on its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in lower earnings and potentially more risk of a failure in the future.

GROTON MUNICIPAL EMPLOYEES scored below the national average of 38.09 on Bankrate's test of asset quality, racking up 32 out of a possible 40 points .

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

Earnings score

How successful a credit union is at making money affects its safety and soundness. Earnings may be retained by the credit union, increasing its capital cushion, or be used to address problematic loans, potentially making the credit union better able to withstand economic trouble. Obviously, credit unions that are losing money have less ability to do those things.

GROTON MUNICIPAL EMPLOYEES fell behind the national average on Bankrate's earnings test, achieving a score of 0 out of a possible 30.

The credit union had an earnings ratio of 0.00 percent in our test, better than the average for all credit unions, suggesting that it's beating its peers in this area.

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.