Safe and Sound

LOUISE MILLS

MERRIMAC, MA
3
Star Rating
LOUISE MILLS is an NCUA-insured credit union started in 1963 and currently headquartered in MERRIMAC, MA. The credit union has assets of $9.5 million, according to December 31, 2017, regulatory filings.

Members have $7.1 million on deposit tended by 3 full-time employees. With that footprint, the credit union currently holds loans and leases worth $7.1 million. Its 1,016 members currently have $8.5 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, LOUISE MILLS exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three important criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring an institution's financial strength, capital is crucial. It acts as a bulwark against losses and as protection for members when a credit union is experiencing financial instability. When looking at safety and soundness, the higher the capital, the better.

LOUISE MILLS received a score of 14 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, less than the national average of 15.65.

LOUISE MILLS appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 14.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

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

A credit union with a large number of these kinds of assets may eventually be required to use capital to cover losses, reducing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a future failure.

On Bankrate's asset quality test, LOUISE MILLS scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

LOUISE MILLS's ratio of troubled assets was 0.00 percent in our test, less than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money affects its safety and soundness. Earnings can be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, likely making the credit union better prepared to withstand economic shocks. Conversely, losses lessen a credit union's ability to do those things.

On Bankrate's test of earnings, LOUISE MILLS scored 0 out of a possible 30, lower than the national average of 10.11.

LOUISE MILLS had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting that it's running ahead of 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.