Safe and Sound

WALTHAM MUNICIPAL EMPLOYEES

WALTHAM, MA
5
Star Rating
WALTHAM, MA-based WALTHAM MUNICIPAL EMPLOYEES is an NCUA-insured credit union started in 1949. As of December 31, 2017, the credit union had assets of $8.7 million.

The credit union currently holds loans and leases worth $1.8 million. Its 898 members currently have $7.1 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WALTHAM MUNICIPAL EMPLOYEES exhibited a superior condition, earning a full 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 American credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

When it comes to measuring a credit union's financial strength, capital is valuable. It acts as a bulwark against losses and affords protection for members when a credit union is experiencing financial instability. When it comes to safety and soundness, the more capital, the better.

On our test to measure capital adequacy, WALTHAM MUNICIPAL EMPLOYEES achieved a score of 28 out of a possible 30 points, better than the national average of 15.65.

WALTHAM MUNICIPAL EMPLOYEES had a capitalization ratio of 28.00 percent in our test, above the average for all credit unions, a sign that it's on more solid financial footing than its peers.

Asset Quality Score

Bankrate uses this test to estimate the impact of troubled assets, such as past-due mortgages, on the credit union's loan loss reserves and overall capitalization.

Having a large number of these kinds of assets may eventually force a credit union to use capital to cover losses, decreasing its buffer of equity. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, pushing down earnings and increasing the risk of a failure in the future.

On Bankrate's test of asset quality, WALTHAM MUNICIPAL EMPLOYEES scored 40 out of a possible 40 points, beating the national average of 38.09 points.

Troubled assets made up 0.00 percent of WALTHAM MUNICIPAL EMPLOYEES's total assets in our test, beneath the national average and potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its long-term survivability. Earnings can be retained by the credit union, boosting its capital buffer, or be used to deal with problematic loans, likely making the credit union more resilient in tough times. Conversely, losses lessen a credit union's ability to do those things.

WALTHAM MUNICIPAL EMPLOYEES scored 2 out of a possible 30 on Bankrate's earnings test, failing to reach the national average of 10.11.

The credit union had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, a sign that it's outperforming 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.