Safe and Sound

WAKEFIELD TOWN EMPLOYEES

WAKEFIELD, MA
4
Star Rating
WAKEFIELD TOWN EMPLOYEES is an NCUA-insured credit union started in 1967 and currently based in WAKEFIELD, MA. As of December 31, 2017, the credit union held assets of $3.8 million.

The credit union has amassed loans and leases worth $1.0 million. WAKEFIELD TOWN EMPLOYEES's 615 members currently have $3.2 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WAKEFIELD TOWN EMPLOYEES exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's 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?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and affords protection for members when a credit union is struggling financially. Therefore, when it comes to measuring an an institution's financial stability, capital is essential. When it comes to safety and soundness, the more capital, the better.

WAKEFIELD TOWN EMPLOYEES scored above the national average of 15.65 points on our test to measure the adequacy of a credit union's capital, receiving a score of 20 out of a possible 30 points.

WAKEFIELD TOWN EMPLOYEES had a capitalization ratio of 20.00 percent in our test, better than the average for all credit unions, suggesting that it's stronger than its peers.

Asset Quality Score

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

A credit union with large numbers of these types of assets could eventually be required to use capital to absorb losses, decreasing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning money, resulting in reduced earnings and potentially more risk of a future failure.

On Bankrate's test of asset quality, WAKEFIELD TOWN EMPLOYEES scored 40 out of a possible 40 points, exceeding the national average of 38.09 points.

Earnings score

A credit union's ability to earn money affects its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, potentially making the credit union more resilient in times of trouble. However, credit unions that are losing money have less ability to do those things.

WAKEFIELD TOWN EMPLOYEES scored 6 out of a possible 30 on Bankrate's earnings test, below the national average of 10.11.

One indication that the credit union is running ahead of 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.