Safe and Sound

HARVARD UNIVERSITY EMPLOYEES

CAMBRIDGE, MA
5
Star Rating
HARVARD UNIVERSITY EMPLOYEES is an NCUA-insured credit union founded in 1939 and currently based in CAMBRIDGE, MA. The credit union holds assets of $635.1 million, according to December 31, 2017, regulatory filings.

Members have $541.2 million on deposit tended by 97 full-time employees. With that footprint, the credit union has amassed loans and leases worth $541.2 million. HARVARD UNIVERSITY EMPLOYEES's 48,899 members currently have $525.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HARVARD UNIVERSITY EMPLOYEES exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three important criteria Bankrate used to evaluate American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and as protection for members when a credit union is struggling financially. It follows then that a credit union's level of capital is a valuable measurement of its financial resilience. When looking at safety and soundness, the higher the capital, the better.

HARVARD UNIVERSITY EMPLOYEES came in below the national average of 15.65 on our test to measure capital adequacy, scoring 10 out of a possible 30 points.

HARVARD UNIVERSITY EMPLOYEES's capitalization ratio of 10.00 percent in our test was lower than the average for all credit unions, a sign that it's on less solid financial footing than its peers.

Asset Quality Score

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

Having a large number of these kinds of assets suggests a credit union may have to use capital to cover 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 elevating the chances of a failure in the future.

On Bankrate's test of asset quality, HARVARD UNIVERSITY EMPLOYEES scored 40 out of a possible 40 points, beating out the national average of 38.09 points.

A below-average ratio of problem 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 profitability affects its long-term survivability. Earnings can be retained by the credit union, giving a boost to its capital cushion, or be used to address problematic loans, likely making the credit union better prepared to withstand economic trouble. Conversely, losses reduce a credit union's ability to do those things.

HARVARD UNIVERSITY EMPLOYEES exceeded the national average on Bankrate's earnings test, achieving a score of 22 out of a possible 30.

One sign that HARVARD UNIVERSITY EMPLOYEES is doing better than 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.