Safe and Sound

MALDEN

MALDEN, MA
5
Star Rating
MALDEN is a MALDEN, MA-based, NCUA-insured credit union founded in 1941. Regulatory filings show the credit union having assets of $24.0 million, as of December 31, 2017.

Thanks to the work of 4 full-time employees, the credit union currently holds loans and leases worth $11.6 million. Its 1,793 members currently have $19.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MALDEN exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three key criteria Bankrate used to score 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 bulwark against losses and provides protection for members when a credit union is experiencing financial trouble. It follows then that a credit union's level of capital is a key measurement of its financial fortitude. 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, MALDEN racked up 26 out of a possible 30 points, exceeding the national average of 15.65.

MALDEN's capitalization ratio of 26.00 percent in our test was above the average for all credit unions, suggesting that it's on more solid financial footing than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the impact of troubled assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

A credit union with lots of these types of assets may eventually have to use capital to absorb losses, shrinking 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 interest for the credit union, diminishing earnings and increasing the chances of a future failure.

MALDEN scored above the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

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

Earnings score

How successful a credit union is at earning money has an effect on its safety and soundness. Earnings can be retained by the credit union, expanding its capital buffer, or be used to deal with problematic loans, likely making the credit union better able to withstand financial shocks. Losses, on the other hand, lessen a credit union's ability to do those things.

On Bankrate's test of earnings, MALDEN scored 4 out of a possible 30, below the national average of 10.11.

One sign that the credit union is outperforming 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.