Safe and Sound

MILLBURY

Millbury, MA
2
Star Rating
Millbury, MA-based MILLBURY is an NCUA-insured credit union started in 1934. The credit union has assets of $329.2 million, according to December 31, 2017, regulatory filings.

With 75 full-time employees, the credit union currently holds loans and leases worth $265.9 million. MILLBURY's 27,957 members currently have $281.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MILLBURY exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three important criteria Bankrate used to grade American credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and affords protection for members when a credit union is experiencing economic instability. Therefore, when it comes to measuring an a credit union's financial strength, capital is important. From a safety and soundness perspective, the more capital, the better.

MILLBURY came in below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, receiving a score of 6 out of a possible 30 points.

MILLBURY had a capitalization ratio of 6.00 percent in our test, less than the average for all credit unions, suggesting that it's on less solid financial footing than its peers.

Asset Quality Score

Bankrate uses this test to determine the impact of problem assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with a large number of these kinds of assets may eventually be forced to use capital to absorb losses, reducing its equity buffer. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, diminishing earnings and elevating the risk of a future failure.

MILLBURY scored 28 out of a possible 40 points on Bankrate's asset quality test, falling short of the national average of 38.09.

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 safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or use them to address problematic loans, likely making the credit union better prepared to withstand financial trouble. However, credit unions that are losing money are less able to do those things.

MILLBURY received below-average marks on Bankrate's test of earnings, achieving a score of 10 out of a possible 30.

MILLBURY had an earnings ratio of 0.00 percent in our test, above 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.