Safe and Sound

MERIDIAN TRUST

CHEYENNE, WY
4
Star Rating
Founded in 1954, MERIDIAN TRUST is an NCUA-insured credit union headquartered in CHEYENNE, WY. As of June 30, 2017, the credit union had assets of $355.5 million.

Thanks to the work of 84 full-time employees, the credit union holds loans and leases worth $293.8 million. Its 26,535 members currently have $302.4 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, MERIDIAN TRUST exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three important criteria Bankrate used to grade U.S. credit unions.

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SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and as protection for members when a credit union is experiencing financial instability. Therefore, an institution's level of capital is an essential measurement of its financial strength. When looking at safety and soundness, more capital is preferred.

MERIDIAN TRUST received a score of 12 out of a possible 30 points on our test to measure capital adequacy, less than the national average of 15.26.

MERIDIAN TRUST had a capitalization ratio of 11.00 percent in our test, lower than the average for all credit unions, suggesting that it could have a harder time weathering financial trouble than its peers.

Asset Quality Score

Bankrate uses this test to estimate the effect of problem assets, such as past-due loans, on the credit union's capitalization and allocated loan loss reserves.

Having a large number of these kinds 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 no longer earning money, pushing down earnings and elevating the chances of a failure in the future.

On Bankrate's test of asset quality, MERIDIAN TRUST scored 40 out of a possible 40 points, better than the national average of 38.15 points.

A below-average ratio of problem assets of 5.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at making money affects its safety and soundness. Earnings can be retained by the credit union, expanding its capital cushion, or be used to address problematic loans, potentially making the credit union better able to withstand economic shocks. However, credit unions that are losing money have less ability to do those things.

On Bankrate's earnings test, MERIDIAN TRUST scored 12 out of a possible 30, better than the national average of 10.31.

One indication that MERIDIAN TRUST is beating its peers in this area was its earnings ratio of 6.00 percent in our test, higher 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.