Safe and Sound

WIDGET

ERIE, PA
4
Star Rating
WIDGET is an NCUA-insured credit union founded in 1936 and currently headquartered in ERIE, PA. As of June 30, 2017, the credit union held assets of $295.3 million.

Members have $190.8 million on deposit tended by 101 full-time employees. With that footprint, the credit union has amassed loans and leases worth $190.8 million. WIDGET's 39,634 members currently have $264.9 million in shares with the credit union.

Overall, Bankrate believes that, as of June 30, 2017, WIDGET exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Keep reading for a look at how the credit union faired on the three key criteria Bankrate used to grade U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital acts as a bulwark against losses and affords protection for members during times of financial trouble for the credit union. Therefore, when it comes to measuring an a credit union's financial strength, capital is essential. When it comes to safety and soundness, more capital is preferred.

WIDGET finished below the national average of 15.26 on our test to measure capital adequacy, achieving a score of 10 out of a possible 30 points.

WIDGET had a capitalization ratio of 9.00 percent in our test, worse than the average for all credit unions, a sign that it's less well prepared for financial trouble than its peers.

Asset Quality Score

This test is intended to try to understand how the credit union's capitalization and allocated loan loss reserves could be affected by troubled assets, such as past-due loans.

Having large numbers of these kinds of assets means a credit union may eventually have to use capital to absorb losses, diminishing its cushion of equity. Many of those assets are also likely to be in non-accrual status and no longer earning interest for the credit union, diminishing earnings and elevating the risk of a failure in the future.

On Bankrate's test of asset quality, WIDGET scored 40 out of a possible 40 points, beating the national average of 38.15 points.

A lower-than-average ratio of troubled 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 has an effect on its long-term survivability. A credit union can retain its earnings, boosting its capital cushion, or put them to work addressing problematic loans, likely making the credit union more resilient in tough times. Credit unions that are losing money, however, are less able to do those things.

WIDGET underperformed the average on Bankrate's test of earnings, achieving a score of 6 out of a possible 30.

One sign that the credit union is outperforming its peers in this area was its earnings ratio of 2.00 percent in our test, above 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.