Safe and Sound

PAWTUCKET MUNICIPAL EMPLOYEES

PAWTUCKET, RI
4
Star Rating
PAWTUCKET MUNICIPAL EMPLOYEES is an NCUA-insured credit union founded in 1964 and currently headquartered in PAWTUCKET, RI. Regulatory filings show the credit union having $4.4 million in assets, as of December 31, 2017.

PAWTUCKET MUNICIPAL EMPLOYEES's 1,066 members currently have $3.8 million in shares with the credit union. With that footprint, the credit union has amassed loans and leases worth $3.0 million.

Overall, Bankrate believes that, as of December 31, 2017, PAWTUCKET MUNICIPAL EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three major criteria Bankrate used to evaluate U.S. credit unions.

WHAT IS
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THE INSTITUTION'S SCORE

Capital Score

Capital works as a bulwark against losses and as protection for members when a credit union is experiencing financial instability. Therefore, a credit union's level of capital is a valuable measurement of its financial resilience. When it comes to safety and soundness, the more capital, the better.

On our test to measure the adequacy of a credit union's capital, PAWTUCKET MUNICIPAL EMPLOYEES achieved a score of 18 out of a possible 30 points, exceeding the national average of 15.65.

PAWTUCKET MUNICIPAL EMPLOYEES had a capitalization ratio of 18.00 percent in our test, better than the average for all credit unions, suggesting that it could be more resilient in a crisis than its peers.

Asset Quality Score

In this test, Bankrate tries to estimate the effect of problem assets, such as unpaid loans, on the credit union's reserves set aside to cover loan losses, as well as overall capitalization.

A credit union with extensive holdings of these types of assets may eventually be required to use capital to cover losses, diminishing its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, diminishing earnings and elevating the chances of a failure in the future.

PAWTUCKET MUNICIPAL EMPLOYEES did better than the national average of 38.09 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

A below-average ratio of problem 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 earning money has an effect on its long-term survivability. Earnings may be retained by the credit union, increasing its capital cushion, or be used to deal with problematic loans, likely making the credit union better prepared to withstand economic shocks. Credit unions that are losing money, however, are less able to do those things.

PAWTUCKET MUNICIPAL EMPLOYEES scored 0 out of a possible 30 on Bankrate's earnings test, less than the national average of 10.11.

PAWTUCKET MUNICIPAL EMPLOYEES had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting that it's running ahead of 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.