Safe and Sound

TAUPA LITHUANIAN

SOUTH BOSTON, MA
3
Star Rating
TAUPA LITHUANIAN is an NCUA-insured credit union founded in 1981 and currently based in SOUTH BOSTON, MA. Regulatory filings show the credit union having assets of $22.7 million, as of December 31, 2017.

Members have $19.0 million on deposit tended by 3 full-time employees. With that footprint, the credit union currently holds loans and leases worth $19.0 million. Its 1,728 members currently have $16.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, TAUPA LITHUANIAN exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union faired on the three key criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and as protection for members during periods of economic trouble for the credit union. Therefore, when it comes to measuring an an institution's financial stability, capital is valuable. From a safety and soundness perspective, more capital is preferred.

TAUPA LITHUANIAN scored below the national average of 15.65 on our test to measure the adequacy of a credit union's capital, scoring 10 out of a possible 30 points.

TAUPA LITHUANIAN appears to be less well prepared for financial trouble than its peers in this area, with a capitalization ratio of 10.00 percent in our test, less 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 troubled assets, such as unpaid mortgages.

Having extensive holdings of these kinds of assets may eventually require a credit union to use capital to cover losses, decreasing 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, resulting in diminished earnings and potentially more risk of a failure in the future.

TAUPA LITHUANIAN fell below the national average of 38.09 on Bankrate's asset quality test, racking up 32 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

How successful a credit union is at making money has an effect on its long-term survivability. A credit union can retain its earnings, expanding its capital buffer, or use them to deal with problematic loans, likely making the credit union better prepared to withstand financial shocks. Conversely, losses diminish a credit union's ability to do those things.

TAUPA LITHUANIAN scored 8 out of a possible 30 on Bankrate's earnings test, falling short of the national average of 10.11.

TAUPA LITHUANIAN had an earnings ratio of 0.00 percent in our test, above 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.