Safe and Sound

NUTMEG STATE FINANCIAL

ROCKY HILL, CT
4
Star Rating
NUTMEG STATE FINANCIAL is an NCUA-insured credit union founded in 1935 and currently based in ROCKY HILL, CT. The credit union has assets of $427.6 million, according to December 31, 2017, regulatory filings.

Thanks to the work of 79 full-time employees, the credit union holds loans and leases worth $331.8 million. NUTMEG STATE FINANCIAL's 38,450 members currently have $358.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, NUTMEG STATE FINANCIAL exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three key criteria Bankrate used to evaluate American credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and affords protection for members during periods of financial trouble for the credit union. Therefore, when it comes to measuring an an institution's financial strength, capital is useful. When it comes to safety and soundness, more capital is better.

On our test to measure the adequacy of a credit union's capital, NUTMEG STATE FINANCIAL racked up 20 out of a possible 30 points, better than the national average of 15.65.

NUTMEG STATE FINANCIAL appears to be more resilient than its peers, with a capitalization ratio of 20.00 percent in our test, above the average for all credit unions.

Asset Quality Score

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

Having large numbers of these types of assets could eventually force a credit union to use capital to absorb losses, shrinking its cushion 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 elevating the risk of a future failure.

NUTMEG STATE FINANCIAL scored 40 out of a possible 40 points on Bankrate's asset quality test, beating the national average of 38.09.

A lower-than-average ratio of problem 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, expanding its capital buffer, or put them to work addressing problematic loans, likely making the credit union better prepared to withstand financial shocks. Obviously, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, NUTMEG STATE FINANCIAL scored 8 out of a possible 30, less than the national average of 10.11.

One sign that the credit union is doing better than 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.