Safe and Sound

NORTH ADAMS M E

NORTH ADAMS, MA
4
Star Rating
North Adams, MA-based NORTH ADAMS M E is an NCUA-insured credit union founded in 1959. Regulatory filings show the credit union having $1.7 million in assets, as of December 31, 2017.

The credit union holds loans and leases worth $861,755. NORTH ADAMS M E's 460 members currently have $1.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NORTH ADAMS M E exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three major criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

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

NORTH ADAMS M E racked up 30 out of a possible 30 points on our test to measure capital adequacy, beating the national average of 15.65.

NORTH ADAMS M E appears to be stronger than its peers, with a capitalization ratio of 30.00 percent in our test, better than the average for all credit unions.

Asset Quality Score

In this test, Bankrate tries to estimate the impact of problem assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

A credit union with lots of these types of assets may eventually be required to use capital to cover losses, reducing its cushion of equity. 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, NORTH ADAMS M E scored 40 out of a possible 40 points, beating the national average of 38.09 points.

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 has an effect on its long-term survivability. Earnings can be retained by the credit union, increasing its capital cushion, or be used to address problematic loans, likely making the credit union better able to withstand economic shocks. Conversely, losses diminish a credit union's ability to do those things.

NORTH ADAMS M E scored 0 out of a possible 30 on Bankrate's earnings test, below the national average of 10.11.

NORTH ADAMS M E had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting 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.