Safe and Sound

HOMEFIELD

NORTH GRAFTON, MA
4
Star Rating
North Grafton, MA-based HOMEFIELD is an NCUA-insured credit union started in 1966. Regulatory filings show the credit union having assets of $148.4 million, as of December 31, 2017.

Members have $102.5 million on deposit tended by 31 full-time employees. With that footprint, the credit union has amassed loans and leases worth $102.5 million. Its 9,142 members currently have $102.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, HOMEFIELD exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three major criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and provides protection for members when a credit union is experiencing economic instability. Therefore, a credit union's level of capital is a valuable measurement of its financial resilience. When it comes to safety and soundness, more capital is better.

HOMEFIELD fell short of the national average of 15.65 on our test to measure capital adequacy, scoring 10 out of a possible 30 points.

HOMEFIELD's capitalization ratio of 10.00 percent in our test was lower than the average for all credit unions, suggesting that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

This test's purpose is to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as past-due loans.

A credit union with lots of these types of assets could eventually be required to use capital to absorb losses, reducing its cushion of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, diminishing earnings and increasing the chances of a future failure.

HOMEFIELD scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating the national average of 38.09.

HOMEFIELD's ratio of troubled assets was 0.00 percent in our test, below the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. A credit union can retain its earnings, boosting its capital buffer, or use them to address 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.

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

The credit union had an earnings ratio of 0.00 percent in our test, above 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.