Safe and Sound

MEMBERSFIRST CT

MERIDEN, CT
4
Star Rating
Started in 1936, MEMBERSFIRST CT is an NCUA-insured credit union headquartered in MERIDEN, CT. Regulatory filings show the credit union having assets of $73.3 million, as of December 31, 2017.

With 12 full-time employees, the credit union has amassed loans and leases worth $26.5 million. Its 6,533 members currently have $64.8 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MEMBERSFIRST CT exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three major criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members when a credit union is experiencing economic instability. It follows then that a credit union's level of capital is an essential measurement of its financial fortitude. When it comes to safety and soundness, more capital is preferred.

On our test to measure capital adequacy, MEMBERSFIRST CT received a score of 12 out of a possible 30 points, lower than the national average of 15.65.

MEMBERSFIRST CT appears to be weaker 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

Bankrate uses this test to estimate the impact of problem assets, such as unpaid mortgages, on the credit union's capitalization and allocated loan loss reserves.

Having a large number of these kinds of assets means a credit union could eventually have to use capital to cover losses, diminishing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, decreasing earnings and increasing the chances of a failure in the future.

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

Troubled assets made up 0.00 percent of MEMBERSFIRST CT's total assets in our test, less than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at making money has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, potentially making the credit union better prepared to withstand economic shocks. Losses, on the other hand, reduce a credit union's ability to do those things.

MEMBERSFIRST CT scored 10 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, an indication that it's beating 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.