Safe and Sound

WORKERS

STAFFORD SPRING, CT
2
Star Rating
WORKERS is an NCUA-insured credit union founded in 1936 and currently based in STAFFORD SPRING, CT. The credit union has $17.1 million in assets, according to December 31, 2017, regulatory filings.

Members have $13.3 million on deposit tended by 6 full-time employees. With that footprint, the credit union has amassed loans and leases worth $13.3 million. WORKERS's 3,944 members currently have $15.9 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, WORKERS exhibited a below-average condition, earning 2 out of 5 stars for safety and soundness. Here's a look at how the credit union did on the three major criteria Bankrate used to grade U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a valuable measurement of an institution's financial fortitude. It works as a bulwark against losses and affords protection for members during periods of financial instability for the credit union. When it comes to safety and soundness, more capital is preferred.

On our test to measure the adequacy of a credit union's capital, WORKERS received a score of 0 out of a possible 30 points, lower than the national average of 15.65.

Asset Quality Score

This test is intended to estimate how the credit union's loan loss reserves and overall capitalization could be affected by troubled assets, such as unpaid mortgages.

Having large numbers of these types of assets may eventually force a credit union to use capital to absorb losses, cutting down on its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning money, reducing earnings and elevating the chances of a future failure.

On Bankrate's test of asset quality, WORKERS scored 32 out of a possible 40 points, lower than the national average of 38.09 points.

WORKERS's ratio of problem assets was 0.00 percent 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 profitability has an effect on its safety and soundness. Earnings can be retained by the credit union, increasing its capital buffer, or be used to address problematic loans, potentially making the credit union more resilient in tough times. Obviously, credit unions that are losing money are less able to do those things.

On Bankrate's test of earnings, WORKERS scored 0 out of a possible 30, falling short of 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, 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.