Safe and Sound

HARTFORD

Hartford, CT
4
Star Rating
HARTFORD is an NCUA-insured credit union started in 1961 and currently based in Hartford, CT. Regulatory filings show the credit union having $94.3 million in assets, as of December 31, 2017.

Thanks to the efforts of 32 full-time employees, the credit union currently holds loans and leases worth $44.7 million. Its 15,417 members currently have $74.4 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HARTFORD exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three major criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial stability, capital is useful. It works as a bulwark against losses and provides protection for members when a credit union is experiencing financial instability. From a safety and soundness perspective, more capital is better.

On our test to measure capital adequacy, HARTFORD scored 18 out of a possible 30 points, beating out the national average of 15.65.

HARTFORD had a capitalization ratio of 18.00 percent in our test, better than the average for all credit unions, an indication that it could be more resilient in a crisis than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of troubled assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

A credit union with large numbers of these types of assets may eventually be forced to use capital to cover losses, shrinking 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 money, pushing down earnings and increasing the risk of a future failure.

On Bankrate's test of asset quality, HARTFORD scored 40 out of a possible 40 points, beating 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, expanding its capital buffer, or use them to deal with problematic loans, likely making the credit union more resilient in tough times. Obviously, credit unions that are losing money have less ability to do those things.

HARTFORD scored 6 out of a possible 30 on Bankrate's test of earnings, coming in below the national average of 10.11.

HARTFORD had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign that it's doing better than 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.