Safe and Sound

SPRINGFIELD STREET RAILWAY EMP.

SPRINGFIELD, MA
5
Star Rating
SPRINGFIELD, MA-based SPRINGFIELD STREET RAILWAY EMP. is an NCUA-insured credit union started in 1926. Regulatory filings show the credit union having $1.6 million in assets, as of December 31, 2017.

The credit union holds loans and leases worth $587,834. Its 235 members currently have $1.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, SPRINGFIELD STREET RAILWAY EMP. exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three important criteria Bankrate used to score American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital is a key measurement of an institution's financial strength. It works as a bulwark against losses and as protection for members when a credit union is struggling financially. When looking at safety and soundness, the higher the capital, the better.

On our test to measure capital adequacy, SPRINGFIELD STREET RAILWAY EMP. racked up 30 out of a possible 30 points, beating out the national average of 15.65.

SPRINGFIELD STREET RAILWAY EMP. had a capitalization ratio of 30.00 percent in our test, above the average for all credit unions, an indication that it's on more solid financial footing than its peers.

Asset Quality Score

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

Having lots of these kinds of assets suggests a credit union may eventually have to use capital to cover losses, shrinking its equity cushion. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in diminished earnings and potentially more risk of a future failure.

SPRINGFIELD STREET RAILWAY EMP. did better than the national average of 38.09 on Bankrate's asset quality test, racking up 40 out of a possible 40 points .

Troubled assets made up 0.00 percent of SPRINGFIELD STREET RAILWAY EMP.'s total assets in our test, less than the national average and suggestive of superior financial strength compared to other credit unions.

Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. A credit union can retain its earnings, expanding its capital cushion, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. However, credit unions that are losing money have less ability to do those things.

On Bankrate's test of earnings, SPRINGFIELD STREET RAILWAY EMP. scored 2 out of a possible 30, below the national average of 10.11.

One sign that SPRINGFIELD STREET RAILWAY EMP. is beating 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.