Safe and Sound

CRAYOLA LLC EMPLOYEES CREDIT UNION

EASTON, PA
5
Star Rating
EASTON, PA-based CRAYOLA LLC EMPLOYEES CREDIT UNION is an NCUA-insured credit union started in 1958. The credit union holds assets of $8.1 million, according to June 30, 2017, regulatory filings.

The credit union currently holds loans and leases worth $3.1 million. CRAYOLA LLC EMPLOYEES CREDIT UNION's 1,092 members currently have $6.8 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, CRAYOLA LLC EMPLOYEES CREDIT UNION exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's an analysis of how the credit union faired on the three major criteria Bankrate used to grade American credit unions on safety and soundness.

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THE INSTITUTION'S SCORE

Capital Score

Capital is a useful measurement of a credit union's financial resilience. It works as a cushion against losses and as protection for members when a credit union is experiencing financial instability. When looking at safety and soundness, the more capital, the better.

CRAYOLA LLC EMPLOYEES CREDIT UNION scored above the national average of 15.26 points on our test to measure capital adequacy, racking up 24 out of a possible 30 points.

CRAYOLA LLC EMPLOYEES CREDIT UNION's capitalization ratio of 17.00 percent in our test was higher than the average for all credit unions, a sign that it's stronger than its peers.

Asset Quality Score

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

A credit union with lots of these types of assets may eventually be forced to use capital to cover losses, diminishing its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and thus aren't earning money, decreasing earnings and elevating the risk of a future failure.

On Bankrate's asset quality test, CRAYOLA LLC EMPLOYEES CREDIT UNION scored 40 out of a possible 40 points, beating the national average of 38.15 points.


Earnings score

A credit union's ability to earn money has an effect on its safety and soundness. Earnings may be retained by the credit union, increasing its capital buffer, or be used to deal with problematic loans, potentially making the credit union better prepared to withstand financial shocks. Losses, on the other hand, diminish a credit union's ability to do those things.

On Bankrate's test of earnings, CRAYOLA LLC EMPLOYEES CREDIT UNION scored 8 out of a possible 30, less than the national average of 10.31.

CRAYOLA LLC EMPLOYEES CREDIT UNION had an earnings ratio of 3.00 percent in our test, higher than the average for all credit unions, an indication 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.