Safe and Sound

CRAYOLA LLC EMPLOYEES CREDIT UNION

EASTON, PA
5
Star Rating
EASTON, PA-based CRAYOLA LLC EMPLOYEES CREDIT UNION is an NCUA-insured credit union founded in 1958. Regulatory filings show the credit union having assets of $7.8 million, as of December 31, 2017.

Its 1,076 members currently have $6.4 million in shares with the credit union. With that footprint, the credit union currently holds loans and leases worth $2.9 million.

Overall, Bankrate believes that, as of December 31, 2017, CRAYOLA LLC EMPLOYEES CREDIT UNION exhibited a superior condition, earning a full 5 stars for safety and soundness. Here's a breakdown of how the credit union did on the three major criteria Bankrate used to grade U.S. credit unions on safety and soundness.

WHAT IS
SAFE AND SOUND?

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THE INSTITUTION'S SCORE

Capital Score

Capital works as a cushion against losses and as protection for members during times of financial instability for the credit union. Therefore, an institution's level of capital is a crucial measurement of its financial resilience. From a safety and soundness perspective, the higher the capital, the better.

CRAYOLA LLC EMPLOYEES CREDIT UNION achieved a score of 26 out of a possible 30 points on our test to measure the adequacy of a credit union's capital, beating the national average of 15.65.

CRAYOLA LLC EMPLOYEES CREDIT UNION had a capitalization ratio of 26.00 percent in our test, better than the average for all credit unions, suggesting that it's more well prepared for financial trouble than its peers.

Asset Quality Score

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

Having large numbers of these types of assets means a credit union could have to use capital to cover losses, cutting down on its equity buffer. It also means that there are likely to be many assets that are in non-accrual status and no longer earning interest for the credit union, resulting in diminished earnings and potentially more risk of a future failure.

CRAYOLA LLC EMPLOYEES CREDIT UNION scored 40 out of a possible 40 points on Bankrate's test of asset quality, beating the national average of 38.09.

Troubled assets made up 0.00 percent of the credit union's total assets in our test, less than the national average and suggestive of greater financial strength than other credit unions.

Earnings score

A credit union's profitability affects its long-term survivability. A credit union can retain its earnings, boosting its capital buffer, or put them to work addressing problematic loans, potentially making the credit union better able to withstand financial shocks. Conversely, losses diminish a credit union's ability to do those things.

CRAYOLA LLC EMPLOYEES CREDIT UNION scored 6 out of a possible 30 on Bankrate's test of earnings, falling short of the national average of 10.11.

One indication that CRAYOLA LLC EMPLOYEES CREDIT UNION is running ahead of its peers in this area was its earnings ratio of 0.00 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.