Safe and Sound

MUTUAL SECURITY

SHELTON, CT
3
Star Rating
Founded in 1982, MUTUAL SECURITY is an NCUA-insured credit union based in SHELTON, CT. The credit union holds $280.7 million in assets, according to December 31, 2017, regulatory filings.

Thanks to the efforts of 70 full-time employees, the credit union has amassed loans and leases worth $259.7 million. Its 26,932 members currently have $249.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, MUTUAL SECURITY exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three major criteria Bankrate used to evaluate American credit unions.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital acts as a cushion against losses and as protection for members when a credit union is struggling financially. Therefore, a credit union's level of capital is a key measurement of its financial resilience. When it comes to safety and soundness, more capital is preferred.

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

MUTUAL SECURITY's capitalization ratio of 6.00 percent in our test was less than the average for all credit unions, an indication that it's less well prepared for financial trouble than its peers.

Asset Quality Score

This test's purpose is to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as past-due loans.

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 cushion. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, resulting in diminished earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, MUTUAL SECURITY scored 36 out of a possible 40 points, lower than the national average of 38.09 points.

MUTUAL SECURITY's ratio of troubled assets was 0.00 percent 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 earning money has an effect on 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 better able to withstand economic shocks. However, credit unions that are losing money have less ability to do those things.

MUTUAL SECURITY received below-average marks on Bankrate's test of earnings, achieving a score of 4 out of a possible 30.

One sign that the credit union is running ahead of 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.