Safe and Sound

OCEAN COMMUNITIES

BIDDEFORD, ME
3
Star Rating
BIDDEFORD, ME-based OCEAN COMMUNITIES is an NCUA-insured credit union founded in 1948. The credit union holds assets of $168.2 million, according to June 30, 2017, regulatory filings.

Thanks to the work of 47 full-time employees, the credit union currently holds loans and leases worth $120.8 million. Its 12,600 members currently have $155.4 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, OCEAN COMMUNITIES 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 important criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and as protection for members when a credit union is experiencing economic trouble. It follows then that when it comes to measuring an an institution's financial fortitude, capital is valuable. When looking at safety and soundness, more capital is preferred.

OCEAN COMMUNITIES received a score of 6 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, falling short of the national average of 15.26.

OCEAN COMMUNITIES had a capitalization ratio of 7.00 percent in our test, below the average for all credit unions, suggesting that it's less well prepared for financial trouble than its peers.

Asset Quality Score

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

A credit union with lots of these kinds of assets could eventually be forced to use capital to absorb losses, reducing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and no longer earning money, diminishing earnings and elevating the risk of a failure in the future.

OCEAN COMMUNITIES scored 36 out of a possible 40 points on Bankrate's asset quality test, coming in below the national average of 38.15.

The credit union's ratio of troubled assets was 9.00 percent in our test, higher than the national average and something to keep an eye on.

Earnings score

How successful a credit union is at making money has an effect on its safety and soundness. A credit union can retain its earnings, giving a boost to its capital buffer, or use them to deal with problematic loans, potentially making the credit union more resilient in times of trouble. Losses, on the other hand, reduce a credit union's ability to do those things.

OCEAN COMMUNITIES scored 8 out of a possible 30 on Bankrate's test of earnings, failing to reach the national average of 10.31.

The credit union had an earnings ratio of 4.00 percent in our test, above the average for all credit unions, suggesting that it's outperforming 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.