Safe and Sound

SOUTHBRIDGE

SOUTHBRIDGE, MA
3
Star Rating
Started in 1938, SOUTHBRIDGE is an NCUA-insured credit union headquartered in SOUTHBRIDGE, MA. Regulatory filings show the credit union having $185.9 million in assets, as of December 31, 2017.

Members have $149.7 million on deposit tended by 44 full-time employees. With that footprint, the credit union currently holds loans and leases worth $149.7 million. SOUTHBRIDGE's 12,383 members currently have $127.7 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SOUTHBRIDGE 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 major criteria Bankrate used to evaluate U.S. credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is a crucial measurement of a credit union's financial fortitude. It acts as a bulwark against losses and affords protection for members during periods of economic instability for the credit union. From a safety and soundness perspective, more capital is better.

SOUTHBRIDGE fell short of the national average of 15.65 on our test to measure the adequacy of a credit union's capital, receiving a score of 14 out of a possible 30 points.

SOUTHBRIDGE appears to be weaker than its peers in this area, with a capitalization ratio of 14.00 percent in our test, lower than the average for all credit unions.

Asset Quality Score

This test is intended to estimate how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by problem assets, such as unpaid mortgages.

Having lots of these types of assets may eventually force a credit union to use capital to cover losses, decreasing its equity cushion. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, pushing down earnings and increasing the chances of a failure in the future.

SOUTHBRIDGE scored below the national average of 38.09 on Bankrate's asset quality test, racking up 36 out of a possible 40 points .

A below-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

A credit union's ability to earn money affects its safety and soundness. A credit union can retain its earnings, giving a boost to its capital cushion, or use them to deal with problematic loans, likely making the credit union more resilient in times of trouble. Credit unions that are losing money, however, are less able to do those things.

SOUTHBRIDGE scored 4 out of a possible 30 on Bankrate's earnings test, less than the national average of 10.11.

The credit union 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.