Safe and Sound

KATAHDIN

MILLINOCKET, ME
4
Star Rating
KATAHDIN is an NCUA-insured credit union started in 1954 and currently headquartered in MILLINOCKET, ME. Regulatory filings show the credit union having $74.7 million in assets, as of December 31, 2017.

Members have $54.9 million on deposit tended by 19 full-time employees. With that footprint, the credit union has amassed loans and leases worth $54.9 million. KATAHDIN's 7,534 members currently have $64.3 million in shares with the credit union.

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

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial fortitude, capital is valuable. It works as a bulwark against losses and as protection for members when a credit union is experiencing economic trouble. When it comes to safety and soundness, the higher the capital, the better.

On our test to measure the adequacy of a credit union's capital, KATAHDIN achieved a score of 16 out of a possible 30 points, beating the national average of 15.65.

KATAHDIN's capitalization ratio of 16.00 percent in our test puts it right in line with the average for all credit unions.

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 past-due mortgages.

Having extensive holdings of these kinds of assets may eventually require a credit union to use capital to cover losses, shrinking its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in diminished earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, KATAHDIN scored 36 out of a possible 40 points, below the national average of 38.09 points.

The credit union's ratio of problem assets was 0.00 percent in our test, below the national average and suggestive of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects its long-term survivability. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to address problematic loans, potentially making the credit union more resilient in tough times. Losses, on the other hand, diminish a credit union's ability to do those things.

KATAHDIN scored 12 out of a possible 30 on Bankrate's test of earnings, better than the national average of 10.11.

One indication that the credit union is running ahead of 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.