Safe and Sound

HOLYOKE COMMUNITY

HOLYOKE, CO
3
Star Rating
HOLYOKE COMMUNITY is a HOLYOKE, CO-based, NCUA-insured credit union that opened its doors in 1938. As of December 31, 2017, the credit union had assets of $29.9 million.

With 11 full-time employees, the credit union holds loans and leases worth $23.4 million. HOLYOKE COMMUNITY's 2,811 members currently have $26.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HOLYOKE COMMUNITY exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three major criteria Bankrate used to grade American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and provides protection for members when a credit union is experiencing financial trouble. Therefore, a credit union's level of capital is a useful measurement of its financial fortitude. From a safety and soundness perspective, more capital is better.

HOLYOKE COMMUNITY received a score of 8 out of a possible 30 points on our test to measure capital adequacy, coming in below the national average of 15.65.

HOLYOKE COMMUNITY had a capitalization ratio of 8.00 percent in our test, less than the average for all credit unions, an indication 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.

Having extensive holdings of these kinds of assets may eventually require a credit union to use capital to absorb losses, cutting down on its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, reducing earnings and elevating the risk of a failure in the future.

HOLYOKE COMMUNITY scored 36 out of a possible 40 points on Bankrate's test of asset quality, less than the national average of 38.09.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, below the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's earnings performance has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the credit union better able to withstand financial trouble. Conversely, losses take away from a credit union's ability to do those things.

HOLYOKE COMMUNITY scored 4 out of a possible 30 on Bankrate's earnings test, below the national average of 10.11.

One indication that HOLYOKE COMMUNITY 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.