Safe and Sound

BAY AREA

Oregon, OH
4
Star Rating
BAY AREA is an Oregon, OH-based, NCUA-insured credit union started in 1934. Regulatory filings show the credit union having $61.0 million in assets, as of December 31, 2017.

Members have $41.9 million on deposit tended by 20 full-time employees. With that footprint, the credit union holds loans and leases worth $41.9 million. Its 5,741 members currently have $52.6 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BAY AREA exhibited a good condition, earning 4 out of 5 stars for safety and soundness. Here's a breakdown of how the credit union faired on the three important criteria Bankrate used to grade American credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital is an important measurement of an institution's financial resilience. It works as a bulwark against losses and as protection for members when a credit union is struggling financially. When looking at safety and soundness, more capital is preferred.

BAY AREA did better than the national average of 15.65 points on our test to measure capital adequacy, scoring 16 out of a possible 30 points.

BAY AREA's capitalization ratio of 16.00 percent in our test puts it right in line with the average for all credit unions.

Asset Quality Score

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

A credit union with a large number of these kinds of assets could eventually be forced to use capital to cover losses, reducing 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 interest for the credit union, pushing down earnings and elevating the risk of a future failure.

BAY AREA fell short of the national average of 38.09 on Bankrate's test of asset quality, racking up 36 out of a possible 40 points .

BAY AREA's ratio of problem assets was 0.00 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 earnings performance has an effect on its safety and soundness. A credit union can retain its earnings, boosting its capital buffer, or use them to deal with problematic loans, likely making the credit union more resilient in times of trouble. However, credit unions that are losing money are less able to do those things.

BAY AREA did below-average on Bankrate's test of earnings, achieving a score of 8 out of a possible 30.

BAY AREA had an earnings ratio of 0.00 percent in our test, higher than the average for all credit unions, suggesting 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.