Safe and Sound

BAYER HERITAGE

Proctor, WV
3
Star Rating
Proctor, WV-based BAYER HERITAGE is an NCUA-insured credit union founded in 1957. As of December 31, 2017, the credit union held assets of $470.6 million.

Thanks to the efforts of 139 full-time employees, the credit union currently holds loans and leases worth $372.9 million. Its 34,315 members currently have $427.3 million in shares with the credit union.

Overall, Bankrate believes that, as of December 31, 2017, BAYER HERITAGE exhibited a generally satisfactory condition, earning 3 out of 5 stars for safety and soundness. Keep reading for a breakdown of how the credit union did on the three important criteria Bankrate used to score U.S. credit unions.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a buffer against losses and provides protection for members when a credit union is experiencing financial instability. It follows then that when it comes to measuring an an institution's financial resilience, capital is essential. From a safety and soundness perspective, the higher the capital, the better.

BAYER HERITAGE received a score of 8 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, coming in below the national average of 15.65.

BAYER HERITAGE appears to be weaker than its peers in this area, with a capitalization ratio of 8.00 percent in our test, worse than the average for all credit unions.

Asset Quality Score

This test is intended to try to understand how the credit union's reserves set aside to cover loan losses, as well as overall capitalization could be affected by troubled assets, such as past-due loans.

A credit union with a large number of these types of assets may eventually be forced to use capital to absorb losses, reducing its buffer of equity. Many of those assets are also likely to be in non-accrual status and thus aren't earning interest for the credit union, diminishing earnings and elevating the chances of a future failure.

On Bankrate's asset quality test, BAYER HERITAGE scored 36 out of a possible 40 points, lower than the national average of 38.09 points.

A lower-than-average ratio of troubled assets of 0.00 percent in our test was potentially indicative of greater financial strength than other credit unions.

Earnings score

A credit union's profitability has an effect on its safety and soundness. A credit union can retain its earnings, increasing its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better able to withstand economic trouble. Obviously, credit unions that are losing money have less ability to do those things.

BAYER HERITAGE scored 8 out of a possible 30 on Bankrate's test of earnings, less than the national average of 10.11.

BAYER HERITAGE had an earnings ratio of 0.00 percent in our test, above the average for all credit unions, suggesting 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.