Safe and Sound

PERU

PERU, NY
4
Star Rating
PERU is an NCUA-insured credit union started in 1963 and currently based in PERU, NY. Regulatory filings show the credit union having $18.7 million in assets, as of June 30, 2017.

With 6 full-time employees, the credit union holds loans and leases worth $10.2 million. PERU's 2,456 members currently have $15.8 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, PERU exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a look at how the credit union faired on the three major criteria Bankrate used to evaluate U.S. credit unions.

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and provides protection for members during periods of financial trouble for the credit union. Therefore, an institution's level of capital is an important measurement of its financial strength. When it comes to safety and soundness, the more capital, the better.

PERU beat out the national average of 15.26 points on our test to measure the adequacy of a credit union's capital, scoring 20 out of a possible 30 points.

PERU appears to be on more solid financial footing than its peers, with a capitalization ratio of 15.00 percent in our test, above the average for all credit unions.

Asset Quality Score

Bankrate uses this test to determine the impact of problem 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 suggests a credit union may have to use capital to cover losses, cutting down on 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 interest for the credit union, resulting in diminished earnings and potentially more risk of a failure in the future.

PERU scored above the national average of 38.15 on Bankrate's test of asset quality, racking up 40 out of a possible 40 points .

A lower-than-average ratio of problem assets of 2.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

How successful a credit union is at earning money affects its long-term survivability. Earnings may be retained by the credit union, giving a boost to its capital buffer, or be used to deal with problematic loans, potentially making the credit union better able to withstand economic shocks. Losses, on the other hand, reduce a credit union's ability to do those things.

PERU scored 4 out of a possible 30 on Bankrate's earnings test, coming in below the national average of 10.31.

The credit union had an earnings ratio of 2.00 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.