Safe and Sound

MASSACHUSETTS FAMILY

LYNN, MA
5
Star Rating
MASSACHUSETTS FAMILY is a LYNN, MA-based, NCUA-insured credit union dating back to 1926. The credit union has $22.9 million in assets, according to December 31, 2017, regulatory filings.

Members have $16.8 million on deposit tended by 3 full-time employees. With that footprint, the credit union currently holds loans and leases worth $16.8 million. Its 1,594 members currently have $19.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MASSACHUSETTS FAMILY exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union faired on the three major criteria Bankrate used to evaluate U.S. 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 affords protection for members when a credit union is struggling financially. Therefore, a credit union's level of capital is a valuable measurement of its financial resilience. When looking at safety and soundness, the more capital, the better.

MASSACHUSETTS FAMILY scored above the national average of 15.65 points on our test to measure capital adequacy, achieving a score of 24 out of a possible 30 points.

MASSACHUSETTS FAMILY had a capitalization ratio of 24.00 percent in our test, above the average for all credit unions, suggesting that it's stronger than its peers.

Asset Quality Score

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

Having extensive holdings of these kinds of assets could eventually require a credit union to use capital to absorb losses, decreasing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, diminishing earnings and increasing the risk of a failure in the future.

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

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its safety and soundness. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to address problematic loans, likely making the credit union more resilient in tough times. Conversely, losses take away from a credit union's ability to do those things.

On Bankrate's earnings test, MASSACHUSETTS FAMILY scored 8 out of a possible 30, coming in below 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, higher 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.