Safe and Sound

DOR WIC

Salisbury, MD
5
Star Rating
DOR WIC is an NCUA-insured credit union founded in 1954 and currently headquartered in Salisbury, MD. The credit union has $8.8 million in assets, according to June 30, 2017, regulatory filings.

Thanks to the work of 2 full-time employees, the credit union has amassed loans and leases worth $3.1 million. Its 1,292 members currently have $7.0 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, DOR WIC exhibited a superior condition, earning a full 5 stars for safety and soundness. Keep reading for an analysis of how the credit union did on the three key criteria Bankrate used to evaluate U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

Find out

THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and affords protection for members when a credit union is experiencing financial instability. Therefore, an institution's level of capital is a key measurement of its financial resilience. From a safety and soundness perspective, the higher the capital, the better.

On our test to measure capital adequacy, DOR WIC scored 30 out of a possible 30 points, exceeding the national average of 15.26.

DOR WIC's capitalization ratio of 21.00 percent in our test was higher than the average for all credit unions, an indication that it's stronger than its peers.

Asset Quality Score

In this test, Bankrate tries to determine the impact of troubled assets, such as unpaid loans, on the credit union's loan loss reserves and overall capitalization.

Having extensive holdings of these kinds of assets may eventually force a credit union to use capital to absorb losses, reducing 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 elevating the risk of a future failure.

DOR WIC did better than the national average of 38.15 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

DOR WIC's ratio of problem assets was 1.00 percent in our test, lower than the national average and potentially indicative of superior financial strength compared to other credit unions.

Earnings score

A credit union's profitability affects its long-term survivability. Earnings may be retained by the credit union, boosting its capital buffer, or be used to address problematic loans, likely making the credit union better prepared to withstand economic trouble. Conversely, losses take away from a credit union's ability to do those things.

DOR WIC scored 10 out of a possible 30 on Bankrate's earnings test, falling short of the national average of 10.31.

DOR WIC had an earnings ratio of 4.00 percent in our test, higher than the average for all credit unions, an indication 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.