Safe and Sound

NEW DIMENSIONS

WATERVILLE, ME
3
Star Rating
Started in 1956, NEW DIMENSIONS is an NCUA-insured credit union based in WATERVILLE, ME. As of December 31, 2017, the credit union held assets of $94.4 million.

With 35 full-time employees, the credit union holds loans and leases worth $84.8 million. Its 8,893 members currently have $65.0 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NEW DIMENSIONS exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Here's an analysis of how the credit union did on the three important criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of an institution's financial strength. It works as a buffer against losses and affords protection for members when a credit union is experiencing financial trouble. When looking at safety and soundness, more capital is better.

On our test to measure capital adequacy, NEW DIMENSIONS received a score of 6 out of a possible 30 points, less than the national average of 15.65.

NEW DIMENSIONS's capitalization ratio of 6.00 percent in our test was below the average for all credit unions, suggesting that it's weaker 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 capitalization and allocated loan loss reserves.

Having extensive holdings of these types of assets means a credit union may eventually have to use capital to absorb losses, decreasing its buffer of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, decreasing earnings and increasing the risk of a failure in the future.

NEW DIMENSIONS finished below the national average of 38.09 on Bankrate's asset quality test, racking up 28 out of a possible 40 points .

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its safety and soundness. A credit union can retain its earnings, increasing its capital cushion, or put them to work addressing problematic loans, potentially making the credit union more resilient in tough times. However, credit unions that are losing money are less able to do those things.

NEW DIMENSIONS scored 14 out of a possible 30 on Bankrate's test of earnings, beating the national average of 10.11.

NEW DIMENSIONS had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting 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.