Safe and Sound

MEMBERS ADVANTAGE COMMUNITY

Barre, VT
4
Star Rating
Founded in 1953, MEMBERS ADVANTAGE COMMUNITY is an NCUA-insured credit union based in Barre, VT. Regulatory filings show the credit union having $133.3 million in assets, as of December 31, 2017.

Thanks to the efforts of 33 full-time employees, the credit union has amassed loans and leases worth $62.0 million. Its 16,039 members currently have $119.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MEMBERS ADVANTAGE COMMUNITY exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union did on the three important criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is an essential measurement of a credit union's financial fortitude. It acts as a cushion against losses and affords protection for members during times of financial instability for the credit union. When looking at safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, MEMBERS ADVANTAGE COMMUNITY received a score of 12 out of a possible 30 points, below the national average of 15.65.

MEMBERS ADVANTAGE COMMUNITY appears to be on less solid financial footing than its peers in this area, with a capitalization ratio of 12.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

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

Having lots of these kinds of assets could eventually require a credit union to use capital to cover losses, diminishing 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, reducing earnings and elevating the risk of a future failure.

MEMBERS ADVANTAGE COMMUNITY fell below the national average of 38.09 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

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

Earnings score

How successful a credit union is at making money affects its long-term survivability. Earnings may be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, likely making the credit union better prepared to withstand financial shocks. However, credit unions that are losing money are less able to do those things.

MEMBERS ADVANTAGE COMMUNITY did above-average on Bankrate's earnings test, achieving a score of 16 out of a possible 30.

MEMBERS ADVANTAGE COMMUNITY had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, an indication that it's doing better than 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.