Safe and Sound

MESSIAH BAPTIST-JUBILEE

BROCKTON, MA
4
Star Rating
BROCKTON, MA-based MESSIAH BAPTIST-JUBILEE is an NCUA-insured credit union started in 1983. Regulatory filings show the credit union having $923,928 in assets, as of December 31, 2017.

Its 336 members currently have $822,613 in shares with the credit union. With that footprint, the credit union has amassed loans and leases worth $190,584.

Overall, Bankrate believes that, as of December 31, 2017, MESSIAH BAPTIST-JUBILEE exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three key criteria Bankrate used to score American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides protection for members during periods of financial instability for the credit union. Therefore, an institution's level of capital is a crucial measurement of its financial fortitude. From a safety and soundness perspective, the higher the capital, the better.

MESSIAH BAPTIST-JUBILEE received a score of 12 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, coming in below the national average of 15.65.

MESSIAH BAPTIST-JUBILEE had a capitalization ratio of 12.00 percent in our test, lower than the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to estimate the effect of problem assets, such as past-due loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with extensive holdings of these types of assets could eventually have to use capital to absorb losses, decreasing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, pushing down earnings and elevating the chances of a future failure.

On Bankrate's test of asset quality, MESSIAH BAPTIST-JUBILEE scored 40 out of a possible 40 points, beating the national average of 38.09 points.

Earnings score

A credit union's earnings performance affects its long-term survivability. Earnings can be retained by the credit union, boosting its capital cushion, or be used to deal with problematic loans, potentially making the credit union more resilient in tough times. Conversely, losses lessen a credit union's ability to do those things.

On Bankrate's earnings test, MESSIAH BAPTIST-JUBILEE scored 8 out of a possible 30, coming in below the national average of 10.11.

One indication 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.