Safe and Sound

MONMOUTH

MONMOUTH, ME
2
Star Rating
MONMOUTH, ME-based MONMOUTH is an NCUA-insured credit union started in 1953. As of December 31, 2017, the credit union had assets of $18.4 million.

Thanks to the efforts of 7 full-time employees, the credit union holds loans and leases worth $9.8 million. MONMOUTH's 2,562 members currently have $16.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MONMOUTH exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three major criteria Bankrate used to score U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a buffer against losses and provides protection for members when a credit union is experiencing financial trouble. It follows then that a credit union's level of capital is a crucial measurement of its financial strength. When looking at safety and soundness, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, MONMOUTH received a score of 6 out of a possible 30 points, less than the national average of 15.65.

MONMOUTH appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 6.00 percent in our test, below the average for all credit unions.

Asset Quality Score

This test is intended to estimate how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as unpaid mortgages.

Having a large number of these types of assets could eventually force a credit union to use capital to cover losses, shrinking its equity buffer. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, resulting in depressed earnings and potentially more risk of a future failure.

MONMOUTH fell short of the national average of 38.09 on Bankrate's test of asset quality, racking up 32 out of a possible 40 points .

Troubled assets made up 0.00 percent of MONMOUTH's total assets in our test, beneath the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or use them to address problematic loans, potentially making the credit union better prepared to withstand financial shocks. However, credit unions that are losing money are less able to do those things.

MONMOUTH fell short of the national average on Bankrate's earnings test, achieving a score of 2 out of a possible 30.

One indication that MONMOUTH is beating 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.